Diamcor Mining, which owns the Krone-Endora at Venetia Project in South Africa, plans to secure a term loan of up to C$5 million ($3.65 million).
The financing proceeds will be used for corporate purposes, expanding processing volumes, and progressing Krone-Endora's work programs.
The company will receive additional working capital to compensate for lengthy tendering and selling processes associated with rough diamonds.
The funding will include unsecured term loans with a 36-month duration and an annual interest rate of 10%.
Interest-only payments are expected at 12 and 24 months.
Principal and residual interest are due on the 36-month anniversary of the closing date for the term loans.
The company will issue one bonus share and one share purchase warrant for each CDN$1.00 ($0.73) of principal provided in the Financing.
Each share purchase warrant will enable the holder to buy one Class A voting common share for C$0.25 ($0.18) per share within 36 months.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
