TORONTO (miningweekly.com) – Emerging South Africa-focused diamond producer Diamcor Mining on Tuesday launched a nonbrokered private placement for up to $1.87-million to support operations at its flagship Krone-Endora at Venetia project, in the Limpopo province, after record rainfall limited production during the first quarter.
Diamcor said the placement would consist of about 1.5-million units at a price of $1.25 each. Each unit would comprise one common share and half a common share purchase warrant, and each whole warrant would entitle the holder to buy a share at a strike price of $1.75 for a period of 36 months after the date it was issued.
The offering was still subject to regulatory approval by the TSX-V.
British Columbia-based Diamcor said the Limpopo province experienced heavy rainfall during the first quarter at levels that had not been recorded in the area for over 200 years. This rainfall had limited the company's ability to process material to meet short-term targets, as well as its ability to complete the sale of rough diamonds and secure revenues as expected during the period.
The diamond miner said operations were now returning to normal, adding that the proceeds from the offering would be used as operating capital to support the continued development of the project, the planned ramping up of operations that were currently under way, the continued processing of material aimed at recovering additional rough diamonds for planned sales in the short term, as well as for general corporate purposes.