Diamcor Mining intends to complete a term loan financing of up to C$1.5 million ($1.07 million) to expedite efforts to support material processing at significantly higher volumes at the company’s Krone-Endora at Venetia Project in South Africa.
The funds will also be used to advance work programmes, preparations for bulk sampling to expand into the greater portions of the project, and for general corporate purposes.
Diamcor said that the term loans under the financing will be unsecured and have an annual interest rate of 15%.
For every C$100,000 ($71,857) that participants or lenders lend under the financing, the company will issue 150,000 common shares and 75,000 share purchase warrants.
The principal and interest of the term loans will be due and payable on the 12-month anniversary of the closing date.
Each share purchase warrant is exercisable to purchase an additional common share for C$0.07 (US 5 cents) per share for 12 months.
Mathew Nyaungwa, Editor in Chief, Rough&Polished
