KELOWNA – The press wire – January 11, 2021 – Diamcor Mines Inc. (TSXV: DMI) / (OTC: DMIFF), (the “Company”) announces that, pursuant to a conditional acceptance provided by the TSX Venture Exchange, the Company has closed a follow-on convertible loan financing round (the “Financing”) on substantially the same terms as the convertible debt financing which was closed last month, as announced in its press release dated December 21, 2020. The Company closed the financing for total gross cash proceeds totaling C $ 420,000.
The Funding consists of unsecured convertible promissory notes (the “Notes”) with a term of two (2) years from the closing date and bearing interest at the rate of 10% per annum. Interest will accrue and be payable on anniversaries one year from the closing date of the Notes, respectively. During the second year, interest will accrue and be payable semi-annually. No capital repayment will be required until maturity. The principal amount of the Notes will be convertible at the option of the Noteholder into Class “A” common shares in the principal amount of the Company (the “Common Shares”) at a rate of Cdn $ 0.07 per Share during the first year and at the end of the year. at a rate of CA $ 0.10 per share for the second year. As provided in Policy 5.2 of the TSX Venture Exchange Corporate Finance Handbook (the “Corporate Finance Handbook”), accrued and unpaid interest will be convertible at the option of the Noteholder into common shares of the Company. at market price on the date on which accrued interest becomes due. Conversion of interest is subject to acceptance by the TSX Venture Exchange. A maximum of 5,999,999 Common Shares would be issued if all of the total principal amount of the Notes were converted in the first year.
In addition to the Notes, the Company issued a total of 1,199,998 non-transferable share purchase warrants to participating investors, each warrant entitling its holder to purchase one (1) common share at a price of $ 0. CA $ 15 for a period of two (2) years from the respective issue dates (the “Warrants”). The number of warrants issued to each participating investor is equal to 20% of the number of common shares into which the principal amount of the investor’s note is convertible during the first year (Principal amount ÷ CA $ 0.07 x 0.2).
Proceeds from the financing will be used for general corporate purposes, operations and the continued advancement of ongoing work programs ahead of the COVID-19 related shutdown at the company’s Krone-Endora project in Venetia.
The financing transaction is subject to regulatory approval from the TSX Venture Exchange as well as the completion of all required final documents and filings. All securities issued under the last tranche will be subject to a holding period of four months plus a day expiring on May 12, 2021.
About Diamcor Mines Inc.
Diamcor Mining Inc. is a fully publicly traded junior diamond mining company that trades on the TSX Venture Exchange under the symbol V.DMI and on the OTC QB International under the symbol DMIFF. The Company has a well established operational and production history in South Africa and extensive previous experience in supplying rough diamonds to the global market.
About Alliance Tiffany & Cie
The Company has established a long-term strategic alliance and a right of first refusal with Tiffany & Co. Canada, a world renowned subsidiary based in New York Tiffany and company., to purchase up to 100% of future production of rough diamonds from the Krone-Endora at Venetia project at then-prevailing prices to be determined by the parties on an ongoing basis. Along with this first right of refusal, Tiffany & Co. Canada also provided the Company with funding to move the project forward. Tiffany & Co. is a publicly traded company that trades on the New York Stock Exchange under the symbol TIF. For more information on Tiffany & Co., please visit their website at www.tiffany.com.
About Krone-Endora in Veneto
In February 2011, Diamcor acquired the Krone-Endora at Venetia project from De Beers Consolidated Mines Limited, comprising the exploration rights to the Krone 104 and Endora 66 farms, which represent a combined area of approximately 5,888 hectares directly adjacent to that by De Beers. the Venetia diamond mine in South Africa. On September 11, 2014, the Company announced that the South African Department of Mineral Resources had granted a mining right for the Krone-Endora project to Venetia covering 657.71 hectares of the total project area of 5,888 hectares. The Company has also filed a mining right application on the remaining areas of the Project. The deposits on the Krone and Endora properties have been identified as a higher grade “alluvial” basal deposit that is covered by a lower grade upper “Eluvial” deposit. It is proposed that the deposits are the result of direct displacement (with respect to the “Eluvial” deposit) and erosion (with respect to the “Alluvial” deposit) of material from the higher terrains of the adjacent areas of Venetia Kimberlite. The deposits on Krone-Endora occur in two layers with a maximum total depth of approximately 15.0 meters from surface to bedrock, allowing for a very low cost mining operation with the potential for diamond production. short term from a high-quality source. Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia mine.
Qualified Person Declaration:
Mr. James P. Hawkins (B.Sc., P.Geo.), Is Director of Exploration and Special Projects for Diamcor Mining Inc., and the Qualified Person under National Instrument 43-101 responsible for overseeing the Execution of Diamcor’s exploration programs and member of the Association of Professional Engineers and Geoscientists of Alberta (“APEGA”). Mr. Hawkins has reviewed this press release and approved its contents.
On behalf of the board of directors
Mr. Dean H. Taylor
President and CEO
Diamcor Mines Inc.
Phone (250) 864-3326
This press release contains certain forward-looking statements. While these forward-looking statements represent our current best judgment, they are subject to a variety of risks and uncertainties which are beyond the Company’s ability to control or predict and which could cause events or uncertainties to occur. actual results differ materially from those anticipated in these forward-looking statements. staring statements. In addition, the Company expressly disclaims any obligation to update any forward-looking statements. Therefore, readers should not place undue reliance on forward-looking statements.
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.