Diamcor Closes First Tranche of Revised Oversubscribed Private Placement

Rhea-AI Summary

Diamcor Mining announced the closing of the first tranche of its revised non-brokered private placement, raising $1,406,000 and expecting the total offering to be oversubscribed. The initial announcement came on May 1, 2024, and received conditional acceptance from the TSX Venture Exchange on May 22, 2024. The original offering amount was increased from $1,500,000 to $2,500,000, with final tranche closing expected by June 15, 2024. Insiders, including management and directors, subscribed for $600,000. The first tranche consists of 28,120,000 units at CND $0.05 per unit, with each unit comprising one Class 'A' Common share and one non-transferable share purchase warrant. Each warrant grants the right to purchase an additional share at CND $0.075 for 36 months. Proceeds are earmarked for advancing the Krone-Endora at Venetia Project, drilling and bulk sampling, potential acquisitions, and general corporate purposes. All private placements are subject to regulatory approval with securities issued having a hold period until October 5, 2024.

Positive

• Raised $1,406,000 in the first tranche, indicating strong investor interest.
• Increased the total offering amount from $1,500,000 to $2,500,000, reflecting potential oversubscription.
• Insiders, including management and directors, subscribed for $600,000, showing confidence from key stakeholders.
• Proceeds will be used for advancing the Krone-Endora at Venetia Project, enhancing long-term shareholder value.
• Units priced at CND $0.05 per unit, each with a warrant exercisable at CND $0.075 for 36 months, providing future investment opportunities.

Negative

• Private placement is subject to TSX Venture Exchange approval, introducing regulatory risk.
• Securities issued will have a hold period until October 5, 2024, potentially limiting liquidity for current investors.
• Dependence on future tranche closing by June 15, 2024, for full financing, posing a risk if not achieved.
• Investment in ongoing discussions and potential acquisitions may not guarantee immediate returns.

THIS PRESS RELEASE IS NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

KELOWNA, BC / ACCESSWIRE / June 4, 2024 / Diamcor Mining Inc. (TSXV:DMI)(OTCQB:DMIFF)(FRA:DC3A), ("Diamcor" or the "Company"), an established diamond mining company focused on developing a supply of ethically sourced, non-conflict, natural rough diamonds to select diamantaires and luxury retailers, announces today that further to its news release of May 1, 2024, the Company has closed a first tranche of $1,406,000.00 of its non-brokered private placement (the "Offering") following receipt of Conditional Acceptance of the Offering from the TSX Venture Exchange on May 22, 2024. The Company now anticipates the Offering will be oversubscribed and has increased the total amount of the original Offering from $1,500,000.00 to an aggregate of up to $2,500,00.00, with a second and final tranche closing expected to close on or before June 15, 2024. Existing insiders, including management and directors, have subscribed for an aggregate of $600,000.00 in the first tranche of the Offering.

The first tranche consists of 28,120,000 units at a price of CND $0.05 per unit. Each unit consists of one Class "A Common share in the authorized capital of the Company (a "Share"), and one non-transferable share purchase warrant (a "Warrant"). Each Warrant will entitle the holder to acquire one additional Class "A" Common share at an exercise price of CND $0.075 for a period of 36 months following the close of the first tranche.

Proceeds from the offering will be used for the continued advancement of the Company's Krone-Endora at Venetia Project (the "Project), the work programmes currently underway, the announced efforts surrounding drilling and bulk sampling on the greater portions of the Project, the advancement of discussions on potential acquisitions of additional opportunities aimed at increasing long-term shareholder value and added growth, and for general corporate purposes. The Company also plans to continue to advance ongoing discussions with financiers and industry related parties on additional funding scenarios which may be beneficial in further supporting the above noted objectives aimed at increasing long-term shareholder value and added growth.

All private placements are subject to regulatory and/or final approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required. Securities issued pursuant to the Offering are subject to a hold period of four months plus one day following the date of issuance, which is October 5, 2024 for securities issued in respect of the initial tranche closing.

The securities sold in the Offering have not been registered under the United States Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent registration under such Act or an applicable exemption from such registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States or any other jurisdiction nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such jurisdiction.

About Diamcor Mining Inc.

Diamcor Mining Inc. is a fully reporting publicly traded diamond mining company with a proven history, which is focused on building a growing supply of ethically sourced, non-conflict, natural rough diamonds to some of the world's most reputable diamantaire's and luxury retailers. The Company has a long-term strategic alliance with world famous Tiffany & Co, and currently, its primary focus is on the development of its Krone-Endora at Venetia Project which is co-located and directly related to De Beers' flagship Venetia Diamond Mine in South Africa. The Venetia diamond mine is long recognized as one of the world's top diamond-producing mines, and the deposits which occur on Company's Krone-Endora Project 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 is also focused on the acquisition and development of additional mid-tier projects with near-term production capabilities to allow the Company to position itself as a growing supplier of ethically and responsibly mined non-conflict natural rough diamonds to reputable diamantaires and select luxury retailers. The Company has a strong commitment to junior mining, social responsibility, women in mining, supporting local communities, and to protecting the environment.

About the Tiffany & Co. Alliance

The Company has an established long-term strategic alliance 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.

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
Diamcor Mining Inc
DeanT@Diamcor.com
+1 250 862-3212

For Investor Relations contact:

Mr. Rich Matthews
Integrous Communications
rmatthews@integcom.us
+1 (604) 355-7179

Mr. Neil Simon
Investor Cubed Inc
nsimon@investor3.ca
+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.

1381-1822-1324, v. 2

SOURCE: Diamcor Mining Inc.

View the original press release on accesswire.com

FAQ

What is the amount raised in Diamcor's first tranche of the private placement?

Diamcor raised $1,406,000 in the first tranche of its non-brokered private placement.

When was the conditional acceptance for Diamcor's private placement received?

The conditional acceptance was received from the TSX Venture Exchange on May 22, 2024.

What is the total amount of Diamcor's revised private placement offering?

The revised private placement offering amount has been increased to $2,500,000.

When is the final tranche of Diamcor's private placement expected to close?

The final tranche is expected to close on or before June 15, 2024.

What is the hold period for the securities issued in Diamcor's offering?

The hold period for the securities issued is four months plus one day, ending on October 5, 2024.

What is the exercise price and period for the warrants issued in the first tranche of Diamcor's offering?

The exercise price for the warrants is CND $0.075, and they are exercisable for a period of 36 months.

How much did Diamcor insiders subscribe for in the first tranche of the private placement?

Diamcor insiders subscribed for an aggregate of $600,000 in the first tranche.

What will the proceeds from Diamcor's private placement be used for?

Proceeds will be used for advancing the Krone-Endora at Venetia Project, drilling and bulk sampling, potential acquisitions, and general corporate purposes.