TSX.V Symbol (DMI)
KELOWNA, BC,
June 4, 2013 /PRNewswire/ -
Diamcor Mining Inc. (TSX-V.DMI), (the "Company") an emerging
producer of rough diamonds, announces that it intends to complete a
non-brokered private placement (the "Offering") of up to 1,500,000
units (the "Units") at a price of $1.25 per Unit for gross proceeds of up to
$1,875,000 (the "Proceeds").
Each Unit will consist of one common share (a "Share") of the
Company and one-half of one common share purchase warrant (a
"Warrant"). Each whole Warrant will entitle the holder
thereof to purchase one Share at an exercise price of $1.75 for a period of 36 months following the
date of issuance
The Offering is subject to regulatory approval and/or approval
of the TSX Venture Exchange along with completion of all definitive
documentation and filings as required. Securities issued
pursuant to the Offering will be subject to a hold period of four
months plus one day following the date of issuance.
As previously announced, the region of the Company's
Krone-Endora at Venetia project experienced very heavy rainfall
during the first quarter of 2013 at levels which had not been
recorded in the area for over 200 years. These rainfalls
limited the Company's ability to process material at levels
targeted for the short-term, and its potential to complete the sale
of rough diamonds and secure revenues as envisioned during the
period. The Company has reported that operations are now
returning to normal, and the Proceeds from the Offering will be
used as operating capital to support the continued advancement of
the Project, the planned ramping of operations underway, the
continued processing of material aimed at recovering additional
rough diamonds for planned sales in the short-term, and for general
and corporate purposes.
On March 13, 2013, the Company
successfully completed the desired procurement, delivery,
construction, and installation of the vast majority of equipment
and infrastructure required to significantly expand the quarrying
and in-field dry-screening operations at the Project. These
upgrades were part of the Company's final preparations in
anticipation of a planned move to 24/7 operations in the near
future, and were completed as budgeted through the previously
announced $4.0 million in additional
financing from its long-term strategic alliance partner Tiffany
& Co. Canada, a subsidiary of
world famous New York based
Tiffany & Co. The expanded quarrying and in-field
screening operations are designed to provide significant
operational cost savings and efficiencies over the long-term of the
Project through the removal of an estimated 60-65% of fine material
(-1.0mm in size) at the quarry through a dry-screening
process. Production capacities of the expanded facilities are
designed to exceed those of the main processing plant to allow for
the stockpiling of treated and screened materials at the main
processing plant. With the fine material removed, screened
material stockpiled at the plant would not be affected by rains in
the future. The delays caused by the unusual rains in the
first quarter of 2013 were a result of unfortunate timing, in that
material recovered from quarry was not able to be processed through
the expanded in-field dry-screening operations prior to being
saturated by the rains, thus no stockpile of previously screened
material was available at the main plant for processing as would be
expected under normal
operations.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publically traded
junior diamond mining company which is listed on the TSX Venture
Exchange under the symbol V.DMI, and on the OTC QX International
under the symbol DMIFF. The Company has a well-established
operational and production history in South Africa, extensive experience supplying
rough diamonds to the world market, and has established a long-term
strategic alliance with world famous Tiffany & Co. Rather
than exposing itself to the high risks and costs associated with
exploration, the Company's focus is on the identification,
acquisition, and operation of unique diamond projects with
near-term production potential such as the Krone-Endora at Venetia
Project. For additional information on Diamcor, please visit
our website at www.diamcormining.com.
About the Tiffany & Co. Alliance
As announced on March 29, 2011,
the Company has established a long-term strategic alliance and
first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous
New York based Tiffany & Co.,
to purchase up to 100% of the future production of rough diamonds
from the Krone-Endora at Venetia Project at then current prices to
be determined by the parties on an ongoing basis. In
conjunction with this first right of refusal, Tiffany & Co.
Canada also provided the Company
with substantial financing to advance the Project as quickly as
possible. Tiffany & Co. is a publically traded company which is
listed on the New York Stock Exchange under the symbol TIF.
Founded in 1837, the Tiffany name is now globally recognised as one
of the premier luxury jewellery and specialty retailers in the
world. Through Tiffany & Co. and various other subsidiaries,
the company is engaged in product design, manufacturing, and
retailing activities on a global basis. As of January 2013, Tiffany & Co. operated 275
stores and boutiques in the Americas, Japan, Asia-Pacific, Europe and the United Arab Emirates, and also engages in
direct selling through internet, catalog and business gift
operations. For additional information on Tiffany & Co., please
visit their website at www.tiffany.com.
About Krone-Endora at Venetia
In February 2011, Diamcor acquired
the Krone-Endora at Venetia Project from De Beers Consolidated
Mines Limited, consisting of the prospecting rights over the farms
Krone 104 and Endora 66, which
represent a combined surface area of approximately 5,888 hectares
directly adjacent to De Beers' flagship Venetia Diamond Mine in
South Africa. De Beers previously
completed various exploration efforts on initial areas of interest
comprised of approximately 307 hectares, a summary of which was
reported in an initial Independent NI 43-101 Technical Report filed
by the Company on July 30, 2009. The
deposits which occur on the properties of Krone and Endora have
been identified as a higher-grade "Alluvial" basal deposit which is
covered by a lower-grade upper "Eluvial" deposit. The deposits are
proposed to be the result of the direct-shift (in respect to the
"Eluvial" deposit) and erosion (in respect to the "Alluvial"
deposit) of an estimated combined 1,000 m (1 km) of material from
the higher grounds of the adjacent Venetia Kimberlite areas. The
deposits on Krone-Endora occur in two layers with an average total
depth of less than 15.0 metres from surface to bedrock, allowing
for a very low-cost mining operation to be employed with the
potential for near-term diamond production from a known
high-quality source. Krone-Endora also benefits from the
significant development of infrastructure and services already in
place due to its location directly adjacent to the Venetia
Mine. Since acquiring Krone-Endora the Company has completed
the construction and installation of extensive infrastructure at
the Project, along with the installation of a purpose built modular
processing plant, and extensive quarrying and in-field screening
operations. Commissioning of the processing plant is now
complete, and the Company's current efforts are designed to be a
continuation of the ongoing advancement of the Project, and as part
of the Company's final preparations in anticipation of a planned
move to 24/7 operations in the near future.
Qualified Person Statement:
Mr. James P.
Hawkins (BSc., P.Geo), is Manager of Exploration &
Special Projects for Diamcor Mining Inc., and the Qualified Person
in accordance with National Instrument 43-101 responsible for
overseeing the execution of Diamcor's exploration programmes and a
Member of the Association of Professional Engineers, Geoscientists
of Alberta ("APEGA"). Mr.
Hawkins has reviewed this press release and approved of its
contents.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
Tel (250) 864-3326
www.diamcormining.com
Investor Relations Contact:
Justin Vaicek
Liolios Group, Inc.
DMI@liolios.com
Tel (949) 574-3860
This press release contains certain forward-looking
statements. While these forward-looking statements represent
our best current judgement, they are subject to a variety of risks
and uncertainties that are beyond the Company's ability to control
or predict and which could cause actual events or results to differ
materially from those anticipated in such forward-looking
statements. Further, the Company expressly disclaims any
obligation to update any forward looking statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
WE SEEK SAFE HARBOUR
Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
SOURCE Diamcor Mining Inc.
