Diamond mining company Diamcor Mining plans to complete a non-brokered private placement financing of up to C$1.5-million, and anticipates that an aggregate of up to C$1.25-million of the financing will be subscribed to by existing larger shareholders, management and directors.
The company says the financing will consist of up to 30-million units at a price of C$0.05 each, with each unit consisting of one common share of the company and one common share purchase warrant.
Each warrant will entitle the holder thereof to buy one share at an exercise price of C$0.075 for a period of 36 months following the date of issuance.
The company plans to close the financing by May 15.
Diamcor says the proceeds will be used for the continued advancement of the company’s Krone-Endora at Venetia project, in South Africa; the work programmes that are currently under way; 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 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 and will not be proceeding with the convertible loan financing of up to C$2-million, as previously announced on January 18.