Diamcor Mining is raising C$2 million ($1.5 million) through a convertible loan transaction to continue efforts to boost processing volumes at the company's Krone-Endora at Venetia Project in South Africa, drilling and bulk sampling on the majority of the project, and general corporate purposes.
There is already an estimated total commitment of C$1,25 million ($927 000) from current larger shareholders and the company's management, it said.
The funding will be made up of unsecured convertible promissory notes with a two-year term from the closing date and an annual interest rate of 15%.
Diamcor stated that interest will accumulate over the first year and be payable 12 months after closure.
The principal amount of the notes will be convertible at the noteholder's option into common shares of the firm at any time up to the maturity date at a rate of C$0.10 (US 7 cents) per share.
“While the company plans to continue ongoing discussions with financiers and industry-related parties on additional funding scenarios, which may be beneficial in increasing long-term shareholder value and added growth, the company will not be proceeding with the term loan financing of up to C$5.0 million ($3.7 million) previously announced on October 2, 2023,” it said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
