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.