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Africa|Diamonds|Mining|PROJECT
Africa|Diamonds|Mining|PROJECT
africa|diamonds|mining|project

Diamcor to raise funds to expedite increased processing at South Africa project

An image showing trucks loading at the Krone-Endora at Venetia project in South Africa

Trucks loading at the Krone-Endora at Venetia project in South Africa

31st October 2024

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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TSX-V-listed Diamcor Mining intends to complete a term loan financing of up to C$1.5-million, to be used to expedite efforts to support the processing of material at significantly higher volumes at the company’s Krone-Endora at Venetia project in South Africa.

The funds will also be spent on the advancement of work programmes previously started, preparations for bulk sampling aimed at expansion into the greater portions of the project and for general corporate purposes.

Term loans under the financing will be unsecured and carry a yearly interest rate of 15%. The company will issue 150 000 common shares in its authorised share capital, along with 75 000 share purchase warrants, for every C$100 000 of principal advanced under the financing by participants or lenders.

Diamcor says it believes the short-term issues that caused the reduction in demand and depressed prices throughout the rough diamond sector this year are now showing signs of improvement.

It adds that the potential for recovery in 2025 is widely expected by most in the industry.

Excess inventories experienced throughout much of the industry’s supply chain owing to elevated post-Covid buying are now becoming more balanced, more restrictive sanctions are being imposed on Russian diamonds and many of the world’s largest luxury retailers are launching significant advertising campaigns to educate consumers on the differences between lab grown diamonds and the long-term value and rarity of natural diamond, Diamcor points out.

It posits that these elements, when combined with the expected future reduction in global production owing to the age of existing mines and the lack of any significant new finds in over ten years, provides the potential for companies with the ability to supply natural non-conflict rough diamonds to be very well-positioned moving forward.

Diamcor mentions that it also continues to advance discussions with various larger industry groups and financiers on the provision of larger non-dilutive facilities to support future growth.

The financing is subject to regulatory approval of the TSX-V along with completion of all definitive documentation and filings as required. 

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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