Image credit: Diamcor Mining
Diamcor Mining, which owns the Krone-Endora at Venetia project, in South Africa, has closed the initial tranche of a C$3.5 million convertible loan financing announced late last month.
It said the first tranche includes subscriptions from five investors for aggregate gross proceeds of $954,500.
Proceeds from the financing will be used for general corporate purposes, the resumption of operations, and the continued advancement of the work programmes previously underway before the COVID-19 related shut down of Krone-Endora at the Venetia project.
The financing consists of unsecured convertible promissory notes having a term of two years from the closing date and bearing interest at the rate of 10% per annum.
Diamcor has also issued an aggregate of 2,7 million non-transferable share purchase warrants to the participating investors, with each share purchase warrant entitling the holder to purchase one common share at C$0.15 for two years.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
