September 05, 16
(IDEX Online) – Diamcor Mining Inc. says it has raised $4.48 million (C$5.82 million) from a brokered private placement financing.
The miner said the offering was oversubscribed and that over 90% of the units offered were bought by institutional investors.
The company said that the shares and warrants in the units offered were subject to a holding period that ends on January 1, 2017.
The money raised in the Offering will be used for the acquisition of additional operational equipment and materials to support the continued advancement of the company’s Krone-Endora at Venetia Project in South Africa, and for general and administrative purposes.
Diamcor bought the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited in February 2011. It consists of the prospecting rights which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers’ Venetia diamond mine.
The company has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at the Venetia Project at current prices to be determined by the parties on an ongoing basis. In conjunction with this first right of refusal, Tiffany & Co. Canada also provided the company with financing to advance the project.