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Shares Issued and Outstanding: 49,702,714
TSXV:DMI
OTCQX:DMIFF
KELOWNA, BC, June 12, 2017 /CNW/ - Diamcor Mining Inc.,
(the "Company") announces that, further to its news release of
June 5, 2017 announcing a
non-brokered private placement financing (the "Offering") of up to
3,529,412 units (the "Units") at a price of CDN$0.85 per Unit for gross proceeds of up to
CDN$3,000,000 (the "Proceeds"), and
its subsequent news release of June 7,
2017 announcing the oversubscription of the Offering, the
Offering has now closed, effective as of June 9, 2017 pursuant to the conditional approval
of the TSX Venture Exchange. The Offering had an
oversubscription of 1,427,497 Units resulting in the issuance of an
aggregate 4,956,909 Units for total gross subscription proceeds of
CDN$4,213,372.65 . The majority of
the Offering was subscribed for by existing institutional investors
and large shareholders of the Company. Each Unit consists of
one common share (a "Share") of the Company, and one-half of one
common share purchase warrant (a "Warrant"). Each whole
Warrant will entitle the holder thereof to purchase one Share at an
exercise price of CDN$1.20 until
June 9, 2020. The Shares and Warrants
are subject to a hold period ending on October 10, 2017.
Units and Proceeds for subscriptions received from members of
the Pro Group and persons who hold, either on a diluted or
undiluted basis, 5% or more of the shares of the Company, will be
held in escrow until such time as TSX Venture Exchange final
approval to the Offering is received, which approval is expected by
the end of business today.
The Company further announces that, as part of the Offering, the
Company has paid to one finder an aggregate cash commission of
CDN$90,884.96, representing 6% of the
gross proceeds received from subscribers introduced to the Company
by such finders, and has issued an aggregate of 106,923
non-transferable warrants to such finder (the "Finder's Warrants"),
representing 6% of the number of Units sold to subscribers
introduced to the Company by such finder. Each Finder's
Warrant entitles the holder to purchase one Share of the Company at
an exercise price of CDN$1.20 until
June 9, 2020. The Finder's
Warrants will also be subject to a hold period ending on
October 10, 2017.
Proceeds of the Offering will be used to strengthen the
Company's balance sheet through the reduction of its existing debt
facilities, with other portions used to advance additional bulk
sampling efforts, and for general and administrative
purposes.
The securities sold in the Offering have not been registered
under the United States Securities Act of 1933, as amended, or any
state securities laws and may not be offered or sold in
the United States absent
registration under such Act or an applicable exemption from such
registration requirements. This press release shall not
constitute an offer to sell or the solicitation of an offer to buy
securities in the United States or
any other jurisdiction nor shall there be any sale of these
securities in any jurisdiction in which such offer, solicitation or
sale would be unlawful prior to the registration or qualification
under the securities laws of any such jurisdiction.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publically traded
junior diamond mining company which is listed on the TSX Venture
Exchange under the symbol V.DMI, and on the OTC QX International
under the symbol DMIFF. The Company has a well-established
operational and production history in South Africa and extensive prior experience
supplying rough diamonds to the world market.
About the Tiffany & Co. Alliance
The Company has established a long-term strategic alliance and
first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous
New York based Tiffany & Co.,
to purchase up to 100% of the future production of rough diamonds
from the Krone-Endora at Venetia Project at then 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. Tiffany & Co. is a
publically traded company which is listed on the New York Stock
Exchange under the symbol TIF. For additional information on
Tiffany & Co., please visit their website at
www.tiffany.com.
About Krone-Endora at Venetia
In February 2011, Diamcor acquired
the Krone-Endora at Venetia Project from De Beers Consolidated
Mines Limited, consisting of the prospecting rights over the farms
Krone 104 and Endora 66, which
represent a combined surface area of approximately 5,888 hectares
directly adjacent to De Beers' flagship 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 at Venetia Project
encompassing 657.71 hectares of the Project's total area of 5,888
hectares. The Company has also submitted an application for a
mining right over the remaining areas of the Project. The
deposits which occur on the properties of Krone and Endora have
been identified as a higher-grade "Alluvial" basal deposit which is
covered by a lower-grade upper "Eluvial" deposit. The deposits are
proposed to be the result of the direct-shift (in respect to the
"Eluvial" deposit) and erosion (in respect to the "Alluvial"
deposit) of material from the higher grounds of the adjacent
Venetia Kimberlite areas. The deposits on Krone-Endora occur in two
layers with an average total depth of less than 15.0 metres from
surface to bedrock, allowing for a very low-cost mining operation
to be employed with the potential for near-term diamond production
from a known 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 Statement:
Mr. James P. Hawkins (B.Sc.,
P.Geo.), is Manager of Exploration & Special Projects for
Diamcor Mining Inc., and the Qualified Person in accordance with
National Instrument 43-101 responsible for overseeing the execution
of Diamcor's exploration programmes and a Member of the Association
of Professional Engineers and Geoscientists of Alberta ("APEGA"). Mr. Hawkins has
reviewed this press release and approved of its contents.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
DTaylor@diamcormining.com
www.diamcormining.com
This press release contains certain forward-looking
statements. While these forward-looking statements represent
our best current judgement, they are subject to a variety of risks
and uncertainties that are beyond the Company's ability to control
or predict and which could cause actual events or results to differ
materially from those anticipated in such forward-looking
statements. Further, the Company expressly disclaims any
obligation to update any forward looking statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
WE SEEK SAFE HARBOUR
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE Diamcor Mining Inc.