Diamcor Reports Increased Rough Diamond Recoveries, and New
Operational Management Team
Shares Issued and Outstanding:
65,311,488
TSXV:DMI
OTCQB:DMIFF
KELOWNA, BC, Canada -- September 19, 2019 -- InvestorsHub
NewsWire -- Diamcor Mining Inc. (TSX-V.DMI / OTCQB-DMIFF), (the “Company”) is pleased to
announce the tender and sale for the current quarter of 3,759.62
carats of rough diamonds, along with the delivery of an additional
4,825 carats for tender in Antwerp in the coming weeks.
The improvement in the total rough diamonds tendered, sold, and
delivered is attributable to the success of current exercises being
performed by the Company’s new operational management team at the
Company’s Krone-Endora at Venetia Project (the “Project”). The
exercises underway included the evaluation of historical processing
practices and procedures at the Project. As part of this evaluation
and analysis, the Project’s new management operating team commenced
the processing of historical tailings and previously stockpiled
material to gather important data. The initial results of these
efforts identified several past deficiencies and other potential
enhancements that should be implemented into new standard operating
practices and procedures. The past deficiencies identified through
these exercises have now been corrected, and new operating
procedures are being implemented to enhance operational results and
efficiencies moving forward. The exercises also provided the
additional short-term benefit of reducing operating costs
associated with heavy equipment and fuel.
Of the total 8,584.62 carats of rough diamonds delivered, an
initial 3,759.62 carats of rough diamonds sold generating total
gross proceeds of USD $569,059.18, resulting in an average price of
USD $151.36 per carat. The Company anticipated this slightly lower
than historical average dollar per carat in the tender due to the
expectation a higher percentage of smaller, lower quality rough
diamonds may be recovered during the exercises being performed.
Current price weaknesses in certain categories of the rough diamond
market are also thought to have contributed to the lower dollar per
carat average achieved, however the Company anticipates the average
price per carat will improve to historical levels as the processing
of newly mined material begins through the now refined process
facilities. Despite the expected increase in the percentage of
smaller diamonds recovered during the current exercises, various
larger gem quality rough diamonds in the +2.0 – 10.0 carat range
were also recovered, along with a gem quality rough diamond
weighing 20.66 which was tendered and sold, and a 28.45 carat gem
quality rough diamond which will be offered in the Company’s next
tender. The recovery of these sizes of rough diamonds confirms some
of the inherent issues with previous processing operations, and the
potential for improved results moving forward.
“I am very pleased with the results being delivered by our
new operational management team, who have not only confirmed their
ability to identify past inefficiencies in both our processing
facilities and operations, but also demonstrate their ability to
correct these issues and enhance operations moving forward”,
noted Diamcor CEO Mr. Dean Taylor. “We believe the current
efforts, focus, and results will benefit the Project in a
meaningful way moving forward.”, added Mr. Taylor.
The Company will provide additional updates regarding the
progress and results of the exercises underway, the new operations
management team, historical issues identified and corrective
actions being implemented in the coming weeks and months.
Term Loan Approval
The Company is pleased to announce that all definitive
documentation, filings, and regulatory approval from the TSX
Venture Exchange for the amended loan financing (the “Financing”)
as announced in its news release of August 26th, 2019 have now been
received. Subscriptions received for the amended loan financing
resulted in aggregate gross proceeds of CDN$1,188,000 (the
“Proceeds’). The previously announced initial $500,000 term loan
was amended and included in the Proceeds. Term loans under the
Financing are unsecured, carry an annual interest rate of 7%
payable at maturity, and the Company will issue a total of
1,425,600 common shares in its authorized share capital, along with
712,800 share purchase warrants, to the lenders pursuant to Policy
5.1 of the TSX Venture Exchange Corporate Finance Manual. The
principal and interest of the Term Loan is due and payable on the
12-month anniversary of the closing date of August 26th, 2019. Each
share purchase warrant (each a “Warrant”) is exercisable to
purchase an additional common share at a price of $0.16 per share
for a period of 12 months. Certain directors and employees of the
Company, including two corporate subscribers, each of which is
controlled by a different director, subscribed for an aggregate of
$155,000 of the Proceeds and the Company will issue an aggregate of
186,000 common shares and 93,000 Warrants, which are included in
the totals noted above.
The proceeds from the Financing will be used to support the
continued advancement of the work programmes currently underway, to
support the deployment of additional operational equipment aimed at
increasing processing volumes at the Project, to provide the
Company with additional working capital to offset the time frames
associated with the tendering and sale of rough diamonds in
Antwerp, and for general and corporate purposes.
About Diamcor Mining Inc.
Diamcor Mining Inc. is a fully reporting publicly traded junior
diamond mining company which is listed 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
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 publicly 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 a
maximum total depth of approximately 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
Tel (250) 864-3326
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.
Diamcor Mining (TSXV:DMI)
Historical Stock Chart
From Oct 2024 to Nov 2024
Diamcor Mining (TSXV:DMI)
Historical Stock Chart
From Nov 2023 to Nov 2024
