Diamcor closes first tranche of financing

/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES, TO "U.S. PERSONS" OR TO UNITED STATES OF AMERICA NEWS SERVICES/

TSX.V Symbol (DMI)

KELOWNA, BC, Feb. 9 /CNW/ - Diamcor Mining Inc. (TSX-V:DMI) (the "Company"), is pleased to announce that, further to its news release of January 26, 2010, the Company has closed a first tranche of $2,152,121 of its non-brokered private placement (the "Financing"). Proceeds of this first tranche will be used for the continued advancement of pre-closing items associated with the previously announced pending acquisition (the "Acquisition") of the Krone-Endora diamond deposit (the "Project") from De Beers Consolidated Mines, the ongoing planning and preparation of post-closing operational items associated with the Project, the continued advancement of future potential acquisitions, and for general corporate purposes.

The Company plans to close a second and final tranche of the Financing in the coming weeks which, in conjunction with the first tranche, would allow the Company to fully fund all remaining costs associated with the Acquisition, which includes the Company's portion of the estimated CND $1,750,000 due at closing, the purchase and deployment of additional equipment for near-term trial-mining, the procurement of a closer grid drilling programme aimed at determining the full potential of both the initial known areas of the Project and other areas of geological interest and, in part, for general corporate purposes.

The first tranche consists of 7,173,739 units at a price of CND $0.30 per unit. Each unit consists of one Company common share (a "Share"), and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant entitles the holder to acquire one additional common share at an exercise price of $0.50 until February 8, 2012.

In conjunction with the closing of the first tranche of this Financing, the Company will pay finder's fees of an aggregate $174,648.87 in cash and issue an aggregate 474,281 broker warrants, with each broker warrant entitling the holder thereof to purchase a Share at a price of $0.50 per Share until February 8, 2011.

All private placements are subject to regulatory and/or final approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required. Securities issued pursuant to the above will be subject to a hold period which does not expire until June 9, 2010.

About the Krone-Endora Project:

The Krone-Endora Project is located on the De Beers owned farms of Krone 104MS and Endora 66MS which are located directly adjacent to the De Beers owned Venetia Diamond Mine in the Limpopo province of the Republic of South Africa, approximately 500 km north-northeast of Johannesburg. Based on published reports, Venetia is the world's third largest mine, and is widely accepted to be South Africa's largest diamond producer with past historical production levels of approximately 9.0 million carats per year reported. The Krone-Endora Project's location directly adjacent to Venetia is of significant relevance in that the resulting alluvial/eluvial deposit identified is proposed to have been formed as a direct result of the erosion of a significant quantity of material from the higher grounds of the Venetia kimberlite clusters onto the lower grounds of Krone and Endora.

Diamcor, through its subsidiary DMI Minerals South Africa (Pty) Limited ("DMI Minerals"), and in conjunction with its 30% Black Economic Empowerment partner Nozala Investments (Pty) Ltd., is now in the final stages of closing the acquisition of the Krone-Endora Project from De Beers, the details of which were originally announced on December 22, 2008. De Beers had completed various exploration programmes on certain initial areas of both the Krone and Endora properties over an extended period of several years including a number of different types of drilling programmes, an initial bulk sampling programme and the procurement of their own non-NI43-101 compliant mineral resource estimate report for their internal use on these initial areas. As part of its due diligence, and the ongoing acquisition of the Project, the Company was provided with all relevant reports, information and the datasets from the various exploration efforts, and that information was then independently reviewed, re-interpreted and re-analysed to allow the Company to file an initial NI43-101 independent technical report (the "Technical Report") on SEDAR concurrently with a press release on July 30, 2009.

Highlights of the report dealing with the initial project area identified at Krone and Endora to date were as follows:

    
    -   Initial inferred resource estimate of 54,258,600 tonnes of diamond-
        bearing gravels occurring in two near-surface litho-stratigraphic
        units.

    -   Initial inferred resource estimate of 1.3 million carats of diamonds.

    -   Conclusion deposit is not only an "alluvial" deposit, but a
        combination of an alluvial and eluvial deposition indicating an
        expected "direct shift" of basal or lower source material from the
        higher grounds of Venetia area.

    -   Due to above, the diamond deposit mineralization appears generally
        uniform throughout the deposit which is unique, as opposed to that of
        a typical higher risk alluvial deposit whereby large areas can be
        barren with only intermittent individual trap sites bearing diamonds.

    -   Historic exploration provides significant understanding of deposit
        formation and an ability to define three main deposit areas of the
        project, consisting of two primary areas, termed after their expected
        originating sources as the K1 and K3 areas, as well as the confluence
        area in which the two primary deposits merge.

    -   Classification of project as late-stage exploration, with
        recommendation for additional closer grid drilling to obtain more
        detailed contact depths and gravel thicknesses, locate possible
        positions for small-scale trap-sites, and outline enriched mining
        zones for desired near-term trial mining exercise.
    

About Diamcor Mining Inc:

Diamcor Mining Inc is a fully reporting publically traded junior diamond mining company which is listed on the TSX Venture Exchange under the symbol V.DMI. The Company has well established operational and production history in South Africa, and extensive experience supplying rough diamonds to the world market. Rather than exposing itself to the high-risks and costs associated with kimberlite exploration, the Company's focus is on the identification, acquisition, and operation of quality near-term production based diamond projects.

    
    On behalf of the Board of Directors

    Mr. Dean H. Taylor
    President & CEO
    Diamcor Mining Inc.
    DTaylor@Diamcormining.com

    Phone:   (250) 864-3326
    Website: www.diamcormining.com
    

This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Further, the Company expressly disclaims any obligation to update any forward looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. This news release is not for dissemination in the United States, to "U.S. Persons" or to United States of America news services.

    
                             WE SEEK SAFE HARBOUR

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or, the accuracy of this release.
    

SOURCE Diamcor Mining Inc.

For further information: For further information: Mr. Dean H. Taylor, President & CEO, Diamcor Mining Inc., DTaylor@Diamcormining.com, Phone: (250) 864-3326, Website: www.diamcormining.com


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