Diamcor Mining has entered into a non-binding letter of intent for non-dilutive financing of up to $5 million with a Dubai-based manufacturer and supplier of bridal and anniversary diamonds to the global market.
It said the commercial terms of the financing will be concluded during the negotiation of the associated definitive documentation and are expected to include a security interest, an interest component, and a revenue participation component.
The financing proceeds will be used to expedite the processing of previously stockpiled oversized material, and the concurrent deployment of additional assets aimed at significantly increasing processing volumes for the long term at the Company’s Krone-Endora at Venetia Project in South Africa.
The funds will also be used to continue advancing the work programmes already underway, conduct bulk sampling in the greater areas of the project, and for general corporate purposes.
It said there would be no issuance of any shares or warrants associated with the financing.
“This financing is the result of long-term relationships we have developed with key associates in Dubai over many years, and the mutual vision our companies share on the merits of building a growing supply of gem quality non-conflict natural rough diamonds for the luxury jewellery sector,” said Diamcor chief executive Dean Taylor.
“While 2024 was a challenging year for everyone in the diamond industry, we believe the factors responsible for this will ultimately begin to stabilise by the second half of 2025, and this financing will help to ensure we are well positioned and ready for this anticipated recovery.”
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished