Diamcor Announces Term Loan Financing to Expedite Increased Processing at Krone-Endora
Diamcor Mining announces a term loan financing of up to CAD$1,500,000 to support increased processing volumes at its Krone-Endora at Venetia Project. The unsecured loans will carry a 15% annual interest rate, with the company issuing 150,000 common shares and 75,000 share purchase warrants per CAD$100,000 borrowed. The warrants are exercisable at CAD$0.07 per share for 12 months. The financing aims to expedite processing operations, advance work programmes, and prepare for bulk sampling expansion. The company notes improving market conditions in the rough diamond sector, with expectations of recovery in 2025 due to balancing inventories, Russian diamond sanctions, and increased marketing efforts for natural diamonds.
Diamcor Mining annuncia un finanziamento tramite prestito a termine fino a CAD$1,500,000 per supportare l'aumento dei volumi di lavorazione presso il progetto Krone-Endora a Venetia. I prestiti non garantiti porteranno un tasso di interesse annuale del 15%, con l'azienda che emetterà 150.000 azioni ordinarie e 75.000 warrant per l'acquisto di azioni per ogni CAD$100,000 preso in prestito. I warrant sono esercitabili a CAD$0.07 per azione per 12 mesi. Il finanziamento mira a velocizzare le operazioni di lavorazione, portare avanti i programmi di lavoro e preparare l'espansione dei campionamenti di massa. L'azienda osserva un miglioramento delle condizioni di mercato nel settore dei diamanti grezzi, con aspettative di ripresa nel 2025 grazie all'equilibratura delle scorte, alle sanzioni sui diamanti russi e a maggiori sforzi di marketing per i diamanti naturali.
Diamcor Mining anuncia un financiamiento de préstamo a plazo de hasta CAD$1,500,000 para apoyar el aumento de volúmenes de procesamiento en su proyecto Krone-Endora en Venetia. Los préstamos no garantizados tendrán una tasa de interés anual del 15%, con la compañía emitiendo 150,000 acciones ordinarias y 75,000 garantías de compra de acciones por cada CAD$100,000 prestados. Las garantías son ejercitables a CAD$0.07 por acción durante 12 meses. El financiamiento tiene como objetivo acelerar las operaciones de procesamiento, avanzar en los programas de trabajo y prepararse para la expansión de muestreo en masa. La compañía señala una mejora en las condiciones del mercado de diamantes en bruto, con expectativas de recuperación en 2025 debido al equilibrio en los inventarios, las sanciones a los diamantes rusos y un aumento en los esfuerzos de marketing para los diamantes naturales.
Diamcor Mining은 Venetia 프로젝트의 Krone-Endora에서 증가된 처리량을 지원하기 위해 최대 CAD$1,500,000의 기한 대출 자금을 발표했습니다. 이 무담보 대출은 연 15%의 이자율이 적용되며, 회사는 대출받은 CAD$100,000당 150,000주 일반 주식과 75,000주 매입 보증서를 발행합니다. 이 보증서는 12개월 동안 주당 CAD$0.07에 행사할 수 있습니다. 이번 자금 조달은 처리 작업을 가속화하고 작업 프로그램을 추진하며 대량 샘플링 확대를 준비하는 것을 목표로 하고 있습니다. 회사는 원자재 다이아몬드 부문에서 시장 조건이 개선되고 있으며, 재고 균형, 러시아 다이아몬드 제재, 자연 다이아몬드 마케팅 노력이 증가함에 따라 2025년에 회복이 예상된다고 언급했습니다.
Diamcor Mining annonce un financement par prêt à terme allant jusqu'à CAD$1,500,000 pour soutenir l'augmentation des volumes de traitement au projet Krone-Endora à Venetia. Les prêts non garantis auront un taux d'intérêt annuel de 15%, avec la société émettant 150 000 actions ordinaires et 75 000 bons de souscription d'actions pour chaque CAD$100,000 emprunté. Les bons sont exerçables à CAD$0.07 par action pour une durée de 12 mois. Le financement vise à accélérer les opérations de traitement, à faire avancer les programmes de travail et à préparer l'expansion de l'échantillonnage en vrac. L'entreprise note une amélioration des conditions du marché dans le secteur des diamants bruts, avec des attentes de reprise en 2025 grâce à l'équilibrage des stocks, aux sanctions contre les diamants russes et à des efforts de marketing accrus pour les diamants naturels.
Diamcor Mining kündigt eine Terminkreditfinanzierung von bis zu CAD$1,500,000 an, um die erhöhten Verarbeitungsvolumina im Projekt Krone-Endora in Venetia zu unterstützen. Die unbesicherten Kredite werden einen jährlichen Zinssatz von 15% haben, wobei das Unternehmen für jedes geliehene CAD$100,000 150,000 Stammaktien und 75,000 Aktienoptionsscheine ausgibt. Die Optionsscheine sind für 12 Monate zu einem Preis von CAD$0.07 pro Aktie ausübbar. Die Finanzierung zielt darauf ab, die Verarbeitungsoperationen zu beschleunigen, Arbeitsprogramme voranzutreiben und sich auf die Expansion der Massensampling-Aktivitäten vorzubereiten. Das Unternehmen weist auf sich verbessernde Marktbedingungen im Sektor der Rohdiamanten hin, mit Erwartungen auf eine Erholung im Jahr 2025 aufgrund von ausgeglichenen Beständen, russischen Diamantsanktionen und verstärkten Marketingbemühungen für natürliche Diamanten.
- Company securing up to CAD$1.5M in financing to expand operations
- Signs of improvement in rough diamond sector with expected recovery in 2025
- Strategic positioning to benefit from increased sanctions on Russian diamonds
- Advancing discussions for larger non-dilutive financing facilities
- High interest rate of 15% on term loans
- Significant share dilution through issuance of shares and warrants
- Current depressed prices in rough diamond sector
- Short-term loan maturity of 12 months
KELOWNA, BC / ACCESSWIRE / October 30, 2024 / Diamcor Mining Inc. (TSX-V: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
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
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 |
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+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.
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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
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