TSX-V-listed Diamcor Mining has closed a follow-on convertible loan financing round for aggregate gross cash proceeds of C$420 000.
This followed on another convertible loan financing round that closed in December.
The company aims to complete a convertible loan financing of up to C$3.5-million, to be used for general corporate purposes, the resumption of operations and continued advancement of work programmes that were under way at the Krone-Endora at Venetia project, in South Africa, prior to the initial Covid-19 hard lockdown in late March 2020.
The financing comprises unsecured convertible promissory notes, having a term of two years from the closing date and bearing interest at a rate of 10% a year.
The principal amount of the notes can be converted at the election of the noteholder into Class A common shares of Diamcor at a rate of C$0.07 apiece in the first year and C$0.10 apiece in the second year.
The participating investors have also been issued non-transferrable share purchase warrants, with each share purchase warrant entitling the holder to buy one common share at a price of C$0.15 apiece for two years from the issuance.
Diamcor in 2011 acquired the Krone-Endora at Venetia project from diamond miner De Beers. The project comprises prospecting rights over the Krone 104 and Endora 66 farms, which represent a combined surface area of about 5 888 ha, adjacent to De Beers’ flagship Venetia diamond mine.