TSX.V Symbol (DMI)
KELOWNA, BC, June 17, 2013 /PRNewswire/ - Diamcor Mining
Inc. (TSX-V.DMI , OTCQX-DMIFF), (the "Company") an emerging
producer of rough diamonds, announces that it has closed the
non-brokered private placement announced on June 4, 2013 (the "Offering"). The
previously announced Offering of up to 1,500,000 units at a price
of $1.25 per Unit was oversubscribed,
with the Company issuing 1,587,784 units at a unit price of
$1.25 per Unit for gross proceeds of
$1,984,730. Each Unit consists
of one common share (a "Share") of the Company and one-half of one
common share purchase warrant (a "Warrant"). Each whole
Warrant entitles the holder thereof to purchase one Share at an
exercise price of $1.75 per share
until the close of business on June 17,
2016. Securities issued pursuant to the Offering will
be subject to a hold period ending on October 18, 2013. Upon closing the Offering, the
Company has 35,142,678 shares issued and outstanding.
The Proceeds from the Offering will be used for operating
capital to support the continued advancement of the Company's
Krone-Endora at Venetia Project, planned ramping up of operations
currently 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.
The Company will pay aggregate finder's fees of seven per cent
(7%) in respect of an aggregate of $438,320 invested under the Offering, for total
finder's fees of $30,682.40 in
cash. The Company will also issue an aggregate of 24,546
broker warrants exercisable to purchase up to 24,546 Shares of the
Company at a price of $1.75 per Share
until June 17, 2016. In
accordance with the policies of the TSX Venture Exchange, the
broker warrants are non-transferable. Common shares issued
upon exercise of the broker warrants will also be subject to a hold
period ending on October 18,
2013.
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 and
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.
