Diamcor closes C$5.82m private placement

2nd September 2016 By: Henry Lazenby - Creamer Media Deputy Editor: North America

VANCOUVER (miningweekly.com) – South Africa-focused diamond project developer Diamcor Mining has successfully closed an oversubscribed private placement financing totalling C$5.82-million.

The Vancouver-headquartered company issued 4.54-million units at C$1.10 each for total proceeds of C$5-million, as well as issuing 746 090 units in connection with the overallotment option for a total of 5.29-million units issued.

Each unit consists of one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to buy one share at an exercise price of C$1.60 until August 31, 2019. 

More than 90% of the units are being acquired by institutional investors, the company advised.

Proceeds from the offering will be used to acquire more equipment and materials to support the continued advancement of the company's Krone-Endora at Venetia project, and for general and administrative purposes, Diamcor stated.