TSX.V Symbol (DMI)
KELOWNA, BC, May 2, 2013 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI), an emerging producer of rough diamonds, has engaged the Liolios Group, Inc. to lead a new investor relations and financial communications program.
"Over the past 24 months, we have successfully completed the extensive infrastructure and capital upgrades for our planned transition to full-scale production of quality rough diamonds at our Krone-Endora at Venetia project which is located directly adjacent to De Beers' flagship Venetia diamond mine in South Africa," said Dean Taylor, president and CEO of Diamcor. "We have also established a strategic alliance with Tiffany & Co., a name synonymous with the highest quality of diamonds and jewelry, and who operates more than 275 stores and boutiques around the world."
"With our first sale of diamonds completed at the end of 2012, we've demonstrated that Diamcor is one of the very few companies in the world with the potential for near-term sustained production of quality rough diamonds," continued Taylor. "Given this progress, and in conjunction with our planned transition to 24/7 operations, we've arrived at an important inflection point in our development where we believe our shareholders would benefit from an experienced team of investor relations professionals to help us communicate our story to the financial community."
Liolios Group brings to Diamcor a proven track record of helping companies build shareholder value by delivering the right message to the right audience and establishing high quality, long-term relationships in the investment community. They will work closely with Diamcor's management to refine and deliver the Company's message, and assist the Company in scheduling road shows and financial conferences over the next several months.
To arrange for a call or meeting with management, contact Justin Vaicek at Liolios Group: Tel (949) 574-3860 or [email protected]
Terms of Engagement
During the term of the agreement, Liolios Group will collaborate with Company management on a non-exclusive basis to provide services which will include, but not be limited to, the development, implementation and maintenance of an on-going stock market support system aimed at increasing investor awareness of the Company's activities and to stimulate investor awareness in the Company. Liolios Group will disseminate public information about the Company to key investment professionals and private parties, and as well to Liolios's existing database of business associates and investment professionals in both the United States of America and Canada. In addition to the ongoing communication and introduction of the company to key members of the financial brokerage and investment community, they will conduct periodic conference calls, identify investor conferences which may be of interest to the Company, and arrange group or individual meetings with portfolio managers, analysts, stockbrokers, and other investment professionals.
The initial term of the agreement with Liolios Group shall commence on May 1, 2013 for a period of six months, and shall thereafter be automatically renewed for an additional six month period unless either party shall notify the other in writing of its intention not to renew, which notice shall be given at least 30 days in advance. As compensation for the services provided for under the agreement, the Company agrees to pay fees of US $5,000 per month for the first two months of the initial term to Liolios, and US $6,000 per month for the remaining four months of the initial term and for any subsequent renewal month. As additional incentive compensation for the services rendered during the term, the Company has also granted Liolios Group options to purchase up to 150,000 Company common shares at a price of $1.50 per share. The options will vest in accordance with the TSX Venture Exchange vesting requirements as follows: 37,500 options may be exercised on August 1, 2013, 37,500 options may be exercised on November 1, 2013, and subject to the terms of the agreement and the renewal provision, 37,500 options may be exercised on February 1, 2014, and the final 37,500 options may be exercised on May 1, 2014. All options will expire three years from the date of issue, and all options exercised will be subject to the required hold periods pursuant to applicable securities laws and TSX Venture Exchange policies. The Liolios Group's engagement is subject to acceptance by the TSX Venture Exchange.
Liolios Group does not hold any securities of the Company nor does it have any direct or indirect interest in the Company. Liolios Group and its principals do not engage in market making activities and the firm will restrict its services to public relations and investor relations consulting.
About Liolios Group
Liolios Group is a highly selective and comprehensive investor relations firm specializing in micro to mid-cap companies. The firm aims to deliver superior performance in corporate messaging and positioning, investor awareness, analyst and financial press coverage and capital attraction. Founded in 1999 by J. Scott Liolios, Liolios Group executives have extensive experience in financial and investments and represent clients in a wide range of industries, including life sciences/healthcare, consumer/internet retail, business services, digital, media/software, clean technology, technology, natural resources and special situations. For more information about Liolios Group, visit www.liolios.com.
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, and on the OTC QX International under the symbol DMIFF. The Company has a well-established operational and production history in South Africa, extensive experience supplying rough diamonds to the world market, and has established a long-term strategic alliance with world famous Tiffany & Co. Rather than exposing itself to the high risks and costs associated with exploration, the Company's focus is on the identification, acquisition, and operation of unique diamond projects with near-term production potential such as the Krone-Endora at Venetia Project. For additional information on Diamcor, please visit our website at www.diamcormining.com.
About the Tiffany & Co. Alliance
As announced on March 29, 2011, the Company has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of world famous New York based Tiffany & Co., to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at Venetia Project at then current prices to be determined by the parties on an ongoing basis. In conjunction with this first right of refusal, Tiffany & Co. Canada also provided the Company with substantial financing to advance the Project as quickly as possible. Tiffany & Co. is a publically traded company which is listed on the New York Stock Exchange under the symbol TIF. Founded in 1837, the Tiffany name is now globally recognised as one of the premier luxury jewellery and specialty retailers in the world. Through Tiffany & Co. and various other subsidiaries, the company is engaged in product design, manufacturing, and retailing activities on a global basis. As of January 2013, Tiffany & Co. operated 275 stores and boutiques in the Americas, Japan, Asia-Pacific, Europe and the United Arab Emirates, and also engages in direct selling through internet, catalog and business gift operations. For additional information on Tiffany & Co., please visit their website at www.tiffany.com.
About Krone-Endora at Venetia
In February 2011, Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting of the prospecting rights over the farms Krone 104 and Endora 66, which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers' flagship Venetia Diamond Mine in South Africa. De Beers previously completed various exploration efforts on initial areas of interest comprised of approximately 307 hectares, a summary of which was reported in an initial Independent NI 43-101 Technical Report filed by the Company on July 30, 2009. The deposits which occur on the properties of Krone and Endora have been identified as a rare, higher-grade "Alluvial" basal deposit which is covered by a lower-grade upper "Eluvial" deposit. The deposits are proposed to be the result of the direct-shift (in respect to the "Eluvial" deposit) and erosion (in respect to the "Alluvial" deposit) of an estimated combined 1,000 m (1 km) of material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur in two layers with an average total depth of less than 15.0 metres from surface to bedrock, allowing for a very low-cost mining operation to be employed with the potential for near-term diamond production from a known high-quality source. Krone-Endora also benefits from the significant development of infrastructure and services already in place due to its location directly adjacent to the Venetia Mine. Since acquiring Krone-Endora the Company has completed the construction and installation of extensive infrastructure at the Project, along with the installation of a purpose built modular processing plant, and extensive quarrying and in-field screening operations. Commissioning of the processing plant is now complete, and the Company's current efforts are designed to be a continuation of the ongoing advancement of the Project, and as part of the Company's final preparations in anticipation of a planned move to 24/7 operations in the near future.
On behalf of the Board of Directors
Investor Relations Contact:
Liolios Group, Inc.
Tel (949) 574-3860
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.
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Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE: Diamcor Mining Inc.
For further information:
Investor Relations Contact:
Liolios Group, Inc.
Tel (949) 574-3860