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Diamcor closes $2m private placement

17th June 2013

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – British Columbia-based and South Africa-focused Diamcor Mining has closed an oversubscribed nonbrokered private placement, issuing 1.58-million units at a price of $1.25 each for gross proceeds of $1.98-million.

The emerging rough-diamond producer had launched the financing to support operations at its flagship Krone-Endora at Venetia project, in Limpopo province, after record rainfall limited production during the first quarter.

Each unit consisted of a common share and half a common share purchase warrant with a strike price of $1.75 per share until the close of business on June 17, 2016.

Upon closing the offering, the company had 35.14-million shares issued and outstanding.

Proceeds from the offering would be used for operating capital to support advancing the company’s flagship project, planned ramping up of operations currently under way, the continued processing of material aimed at recovering additional rough diamonds for planned sales in the short term, and for general and corporate purposes.

Edited by Creamer Media Reporter

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