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Diamcor Announces Term Loan Financing to Expedite Increased Processing at Krone-Endora

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Diamcor Mining announces a CAD$1,500,000 term loan financing with a 15% annual interest rate. For every CAD$100,000 advanced, the company will issue 150,000 common shares and 75,000 share purchase warrants exercisable at CAD$0.07 per share. The loans will mature in 12 months.

The funds will support increased processing volumes at the Krone-Endora at Venetia Project, advance existing work programmes, and prepare for bulk sampling expansion. The company notes improving conditions in the rough diamond sector, citing inventory normalization, stricter Russian diamond sanctions, and increased luxury retailer marketing efforts highlighting natural diamonds' value versus lab-grown alternatives.

Diamcor Mining annuncia un finanziamento tramite prestito a termine di CAD$1,500,000 con un tasso di interesse annuale del 15%. Per ogni CAD$100,000 erogati, l'azienda emetterà 150,000 azioni ordinarie e 75,000 warrant per l'acquisto di azioni esercitabili a CAD$0,07 per azione. I prestiti scadranno in 12 mesi.

I fondi supporteranno l'aumento dei volumi di lavorazione presso il Krone-Endora at Venetia Project, progressi nei programmi di lavoro esistenti e preparazioni per l'espansione del campionamento di massa. L'azienda sottolinea il miglioramento delle condizioni nel settore dei diamanti grezzi, citando la normalizzazione dell'inventario, sanzioni russe più severe e l'aumento degli sforzi di marketing da parte dei rivenditori di lusso per evidenziare il valore dei diamanti naturali rispetto alle alternative create in laboratorio.

Diamcor Mining anuncia un financiamiento por préstamo a plazo de CAD$1,500,000 con una tasa de interés anual del 15%. Por cada CAD$100,000 avanzados, la empresa emitirá 150,000 acciones ordinarias y 75,000 opciones de compra de acciones que se pueden ejercer a CAD$0.07 por acción. Los préstamos vencerán en 12 meses.

Los fondos apoyarán el aumento de los volúmenes de procesamiento en el Krone-Endora at Venetia Project, el avance de los programas de trabajo existentes y la preparación para la expansión del muestreo a granel. La empresa señala la mejora de las condiciones en el sector de los diamantes en bruto, citando la normalización del inventario, sanciones más estrictas a los diamantes rusos y un aumento en los esfuerzos de marketing de los minoristas de lujo que destacan el valor de los diamantes naturales frente a las alternativas cultivadas en laboratorio.

Diamcor Mining은 15%의 연이율을 가진 CAD$1,500,000 규모의 기한이 정해진 대출 자금 조달을 발표했습니다. CAD$100,000이 대출될 때마다 회사는 150,000주 보통주와 주당 CAD$0.07에 행사 가능한 75,000주 구매 워런트를 발행하게 됩니다. 대출은 12개월 후 만기됩니다.

이 자금은 Krone-Endora at Venetia Project의 처리량 증가를 지원하고, 기존 작업 프로그램을 추진하며, 대량 샘플링 확장을 준비하는 데 사용될 것입니다. 회사는 원석 다이아몬드 분야에서 상황이 개선되고 있음을 언급하며, 재고 정상화, 더 엄격한 러시아 다이아몬드 제재, 그리고 천연 다이아몬드의 가치를 강조하는 고급 소매업체의 마케팅 노력이 증가하고 있다고 밝혔습니다.

Diamcor Mining annonce un financement par prêt à terme de CAD$1,500,000 avec un taux d'intérêt annuel de 15%. Pour chaque CAD$100,000 avancé, la société émettra 150,000 actions ordinaires et 75,000 bons de souscription d'actions exerçables à CAD$0,07 par action. Les prêts arriveront à échéance dans 12 mois.

Les fonds soutiendront l'augmentation des volumes de traitement au Krone-Endora at Venetia Project, l'avancement des programmes de travail existants et la préparation à l'expansion des échantillons en vrac. La société note l'amélioration des conditions dans le secteur des diamants bruts, citant la normalisation des stocks, des sanctions plus strictes sur les diamants russes et des efforts de marketing accrus de la part des détaillants de luxe mettant en avant la valeur des diamants naturels par rapport aux alternatives cultivées en laboratoire.

Diamcor Mining gibt eine Terminkreditfinanzierung in Höhe von CAD$1,500,000 mit einem jährlichen Zinssatz von 15% bekannt. Für jede ausgezahlte Summe von CAD$100,000 wird das Unternehmen 150,000 Stammaktien und 75,000 Optionen auf Aktien ausgeben, die zu einem Preis von CAD$0.07 pro Aktie ausgeübt werden können. Die Kredite laufen in 12 Monaten aus.

Die Mittel werden die Erhöhung des Verarbeitungsvolumens im Krone-Endora at Venetia Project unterstützen, um die bestehenden Arbeitsprogramme voranzutreiben und sich auf die Erweiterung der Massensamples vorzubereiten. Das Unternehmen weist auf die verbesserten Bedingungen im Rohdiamantsektor hin und führt dabei die Normalisierung der Bestände, strengere russische Diamant-Sanktionen und zunehmende Marketinganstrengungen von Luxus-Einzelhändlern an, die den Wert von natürlichen Diamanten im Vergleich zu Labor-gezogenen Alternativen betonen.

Positive
  • Project expansion and increased processing volumes planned
  • Industry conditions showing signs of improvement for 2025
  • Ongoing discussions for larger non-dilutive financing facilities
Negative
  • High interest rate of 15% on term loans
  • Significant share dilution through issuance of shares and warrants
  • Current reduced demand and depressed prices in rough diamond sector

KELOWNA, BC / ACCESSWIRE / October 30, 2024 / Diamcor Mining Inc. (TSXV:DMI)(OTCQB:DMIFF)(FRA:DC3A), ("Diamcor" or the "Company"), a well-established Canadian diamond mining company with a proven history in the mining, exploration, and sale of rough diamonds, announces that the Company intends to complete a term loan financing (the "Financing") of up to CAD$1,500,000. Term loans under the Financing will be unsecured, carry an annual interest rate of 15%, and the Company will issue a total of 150,000 common shares in its authorized share capital, along with 75,000 share purchase warrants, for every CAD$100,000 of principal advanced under the Financing by participants/lenders pursuant to policy 5.1 of the TSX Venture Exchange Corporate Finance Manual. The principal and interest of the term loans will be due and payable on the 12 month anniversary of the closing date. Each share purchase warrant (each a "Warrant") is exercisable to purchase an additional common share at a price of CAD$0.07 per share for a period of 12 months.

The proceeds of the Financing will be used to expedite efforts to support the processing of material at significantly higher volumes at the Company's Krone-Endora at Venetia Project (the "Project"), the advancement of work programmes previously underway, preparations for bulk sampling aimed at expansion into the greater portions of the Project, and for general corporate purposes. The Company believes the short-term issues which caused the recent reduction in demand and depressed prices throughout the rough diamond sector in 2024 are now showing signs of improvement, and the potential for recovery in 2025 is widely expected by most in the industry. Excess inventories experienced throughout much of the industry's supply chain due to elevated post-Covid buying are now becoming more balanced, more restrictive sanctions are being imposed on Russian diamonds, and many of the world's largest luxury retailers are launching significant advertising campaigns to educate consumers on the differences between lab grown diamonds and the long-term value and rarity of natural diamonds. These elements, when combined with the expected future reduction in global production due to the age of existing mines and the lack of any significant new finds in over 10 years, all provide the potential for companies with the ability to supply natural non-conflict rough diamonds to be very well-positioned moving forward. The Company would also note that it continues to advance discussions with various larger industry groups and financiers on the provision of larger non-dilutive facilities to support future growth.

The Financing is subject to regulatory approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required. All securities issued pursuant to the above will be subject to a hold period of four months plus one day following the closing.

About Diamcor Mining Inc.

Diamcor Mining Inc. is a fully reporting publicly traded Canadian diamond mining company with a well-established proven history in the mining, exploration, and sale of rough diamonds. With a long-term strategic alliance with world famous Tiffany & Co, the Company's primary focus is on the mining and development of its Krone-Endora at Venetia Project which is co-located and directly adjacent to De Beers' Venetia Diamond Mine in South Africa. The Venetia diamond mine is recognized as one of the world's top diamond-producing mines, and the deposits which occur on Krone-Endora have been identified as being the result of shift and subsequent erosion of an estimated 50M tonnes of material from the higher grounds of Venetia to the lower surrounding areas in the direction of Krone and Endora. The Company focuses on the acquisition and development of mid-tier projects with near-term production capabilities and growth potential and uses unique approaches to mining that involves the use of advanced technology and techniques to extract diamonds in a safe, efficient, and environmentally responsible manner. The Company has a strong commitment to social responsibility, including supporting local communities and protecting the environment.

About the Tiffany & Co. Alliance

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 market prices. In conjunction with this first right of refusal, Tiffany & Co. Canada also provided the Company with financing in an effort to advance the Project as quickly as possible. Tiffany & Co. is now owned by Moet Hennessy Louis Vuitton SE (LVMH), a publicly traded company which is listed on the Paris Stock Exchange (Euronext) under the symbol LVMH and on the OTC under the symbol LVMHF. For additional information on Tiffany & Co., please visit their website at www.tiffany.com.

About the Krone-Endora at Venetia Project

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. The Company subsequently announced that the South African Department of Mineral Resources had granted a Mining Right for the Krone-Endora at Venetia Project encompassing 657.71 hectares of the Project's total area of 5,888 hectares. The Company has also submitted an application for a mining right over the remaining areas of the Project. 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. These 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 1,000 vertical meters of material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur with a maximum total depth of approximately 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 De Beers Venetia Mine, which is widely recognised as one of the top producing diamond mines in the world.

Qualified Person Statement:

Mr. James P. Hawkins (B.Sc., 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.
www.diamcormining.com

For further information contact:

Mr. Dean H. Taylor
Diamcor Mining Inc
DeanT@Diamcor.com
+1 250 862-3212

For Investor Relations contact:

Mr. Rich Matthews

Mr. Neil Simon

Integrous Communications

Investor Cubed Inc

rmatthews@integcom.us

nsimon@investor3.ca

+1 (604) 355-7179

+1 (647) 258-3310

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.



View the original press release on accesswire.com

FAQ

What is the size and terms of Diamcor Mining's (DMIFF) October 2024 term loan financing?

Diamcor announced a CAD$1,500,000 term loan financing with a 15% annual interest rate, 12-month maturity, and includes issuance of 150,000 shares plus 75,000 warrants per CAD$100,000 borrowed.

How will Diamcor Mining (DMIFF) use the proceeds from the October 2024 financing?

The proceeds will be used to increase processing volumes at Krone-Endora at Venetia Project, advance existing work programmes, prepare for bulk sampling expansion, and general corporate purposes.

What are the terms of the warrants issued in Diamcor's (DMIFF) October 2024 financing?

The warrants are exercisable at CAD$0.07 per share for a 12-month period, with 75,000 warrants issued per CAD$100,000 of principal advanced.

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