Diamcor Mining intends to complete a non-brokered private placement financing of up to C$1,5 million ($1,09 million) and anticipates that an aggregate of up to C$1,25 million ($0,908 million) of the financing will be subscribed to by existing larger shareholders, management, and directors.
It said proceeds from the offering will be used for the continued advancement of the company’s Krone-Endora at Venetia Project.
It will also be used for drilling and bulk sampling on the greater portions of the project, the advancement of discussions on potential acquisitions of additional opportunities aimed at increasing long-term shareholder value and added growth, and for general corporate purposes.
Diamcor said the financing will consist of up to 30 million units for Canadian 5 cents (US 4 cents) per unit, with each unit consisting of one common share of the company, and one common share purchase warrant.
Each warrant will entitle the holder thereof to purchase one share at an exercise price of Canadian 75 cents (US 55 cents) for 36 months following the date of issuance.
The financing will close by May 15, 2024.
Meanwhile, Diamcor said it plans to continue to advance ongoing discussions with financiers and industry-related parties on additional funding scenarios which may be beneficial in further supporting its objectives aimed at increasing long-term shareholder value and added growth.
It will also abandon the convertible loan financing of up to C$2 million ($1,45 million) as announced in January.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
