Dual-listed Diamcor Mining intends to complete a convertible loan financing of up to C$3.5-million.
The financing will comprise unsecured convertible promissory notes with a term of two years from the closing date and bearing interest at the rate of 10% a year.
The proceeds will be used for general corporate purposes, the resumption of operations and the continued advancement of the work programmes that were under way at the company’s Krone-Endora at Venetia project, in South Africa, prior to the Covid-19-related shutdown.
As previously announced, the Krone-Endora at Venetia project was subject to a national lockdown directive issued by the government of South Africa. Initially, mining operations and development were not permitted at all, but restrictions have since been eased.
Diamcor said the country's recent move to Level 1 restrictions is encouraging, as it provides for the suspension of the previous restrictions preventing the resumption of operations at the Krone-Endora at Venetia project.
The financing transaction is subject to regulatory approval of the TSX-V along with completion of all definitive documentation and filings as required.