TSX-V-listed Diamcor Mining has announced its intention to complete a convertible loan financing of up to C$2-million consisting of unsecured convertible promissory notes.
The company expects that C$1.25-million of the financing will be subscribed for by existing large shareholders and management of the company.
The notes will be payable 12 months from the date of closing.
The principal amount of the notes will be convertible at the election of the noteholder into common shares of the company at any time up to the maturity date at a rate of C$0.10 apiece.
Additionally, Diamcor will issue non-transferable share purchase warrants to eligible participating investors with each share purchase warrant entitling the holder to buy one common share of the company at a price of C$0.15 apiece for two years from the date of issuance.
Diamcor will use the proceeds from the financing towards increasing processing volumes at the Krone-Endora at Venetia diamond mining project, in South Africa, as well as to undertake drilling and bulk sampling on the greater portions of the project.
While the company plans to continue ongoing discussions with financiers and industry-related parties on additional funding scenarios which may be beneficial in increasing long-term shareholder value and added growth, Diamcor will not be proceeding with the term loan financing of up to C$5-million as previously announced in October last year.