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TSX.V Symbol (DMI)
KELOWNA, BC, Dec. 7 /CNW/ - Diamcor Mining Inc. (TSX-V:DMI) (the "Company"), today announces that the Company has secured $400,000.00 in term loans (the "Term Loans") from various investors, and one insider. The Company submitted the required notification documentation for the Term Loans to the TSX Venture Exchange (the "Exchange") on December 2, 2009, allowing it to finalize documentation associated with the closing of these Term Loans. The Term Loans will carry an annual interest rate of 10% and the Company will issue a total of 400,000 common shares in its authorized share capital to the lenders pursuant to Policy 5.1 of the TSX Venture Exchange Corporate Finance Manual and the Discounted Market Price as at the December 1, 2009 market close. The principal and interest of the Term Loans are due and payable on the six month anniversary of the closing date, and in accordance with the Exchange guidelines, the Company has agreed to pay a finder's fee of 7% in cash to arm's length parties in respect of $330,000 of Term Loans advanced by arm's length parties.
The proceeds from these Term Loans will be used for general corporate purposes, and to support project planning efforts currently underway necessary for the finalization of the acquisition of the Krone-Endora alluvial diamond deposit (the "Deposit") from De Beers Consolidated Mines Limited ("De Beers"). The Company also wishes to advise that it anticipates closing of the previously announced Private Placement of up to $5,000,000 (the "Offering") to occur within the next 45 days. Proceeds from the Offering will be used to fund the remaining purchase price of R12 500 000 (Approximately $1,750,000 CND) for the acquisition of the Krone-Endora Deposit from De Beers, the purchase of various equipment to be used in the recommended post-closing trial mining efforts, and for general corporate purposes.
All transactions are subject to regulatory, and/or approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required. All securities issued pursuant to the above will be subject to a hold period of four months plus one day following the closing.
Diamcor Mining is a junior resource company with established operations and production history in South Africa. The Company is determined to use this established operating history and industry knowledge to increase its current production of diamonds through the development and or, acquisition of additional quality properties in the region.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc.
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.
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