Diamcor Mining Closes Second Tranche of Financing; Announces Tender of Rough Diamonds

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Diamcor Mining Closes Second Tranche of Financing; Announces Tender of Rough Diamonds

Diamcor Mining Inc., which closed the first tranche of its “revised non-brokered private placement of units (the Financing)” for gross proceeds totalling US$ 2,000,582.50 in June this year, has now announced the closing of a second and final tranche of the Financing. Under the latter, the Company has issued 3,510,315 additional units for proceeds totalling US$ 1,228,610.25.

“Each Unit consists of one common share (a Share) of the Company, and one-half of one common share purchase warrant (a Warrant),” Diamcor elaborated. “Each whole Warrant will entitle the holder thereof to purchase one Share at an exercise price of CDN$ 0.60 until August 29, 2021. Securities issued pursuant to the final tranche of the Financing will be subject to a hold period ending on December 30, 2018.”

The Company also stated that units and subscription proceeds for subscriptions received from members of the Pro Group will be held in escrow until such time as TSX
Venture Exchange’s final approval to the Offering is received, which was expected to come through yesterday.

As part of the second tranche closing, the Company revealed it paid two finders an aggregate cash commission of CDN$ 6,510.00, representing 6% of the gross proceeds received from subscribers introduced to the Company by such finders.

The Company said that the money raised from the two tranches of financing along with the proceeds earned from the tendering of rough diamonds “will allow the Company to continue to proceed with efforts to improve recoveries of water from the Project’s settling dams to support planned increases in processing volumes at the Project for the long-term”.

Meanwhile, Diamcor also announced that it would be holding a tender of 2,618.79 carats of rough diamonds in Antwerp in the coming week. The tender also includes the previously announced +10.8 carat special category rough diamonds recovered.

“Our revised facilities are demonstrating their effectiveness in reducing the fines issue, and the results of initial processing, along with the recovery of larger special rough diamonds, is promising,” noted Diamcor CEO Dean H. Taylor. “A two-staged approach of first refining the facilities’ crushing and screening efficiencies prior to the installation of paste thickening is proving effective, as it is providing us with the ability to increase processing volumes as expected, with the results of those efforts aimed at reducing the relative size of the paste thickener, and the associated costs, for the long-term.”

News Source: gjepc.org

Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.

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