TSX.V Symbol (DMI)
KELOWNA, BC, May 20 /CNW/ - Diamcor Mining Inc. (TSX-V:DMI) (the
"Company"), today announces that it has terminated the definitive Sale of
Shares Agreement, as amended, (the "Agreement") for the disposition of the
Company's So Ver Mine (Pty) Ltd. ("So Ver") subsidiary as previously announced
on March 19, 2009 and April 8, 2009. The Company exercised its right to
terminate the Agreement as a result of the purchasers ultimately failing to
pay the balance of the purchase price of R 2,950,000 as required.
As a result of terminating the Agreement, the Company sought alternatives
to the disposition of its non-core assets and has now entered into a Sale of
Land Agreement ("SOL Agreement") whereby the Company will dispose of its So
Ver farm no. 90, measuring 513, 9192 hectares located in the district of
Barkly West, South Africa (the "So Ver Farm"). The SOL Agreement is exclusive
of the mining licences and rights which the Company holds on the lands
comprising a part of the So Ver Farm and the SOL Agreement provides that the
Company may continue to conduct mineral exploration on the areas of the So Ver
Farm permitted by such mining licences and rights. The Company will continue
discussions with various interested parties for the purchase of the So Ver
Mine (Pty) Ltd entity and remaining associated part of the So Ver Farm.
The purchase price for the So Ver Farm is R 2,000,000 of which R 200,000
has been deposited into the conveyancer's trust account and the remaining R
1,800,000 will be deposited into the conveyancer's trust account upon
registration of the transfer of the So Ver Farm into the name of the
purchaser. The elements and effects of the transaction on the Company have
been reviewed by Management and it will be appropriately treated as an exempt
transaction not requiring the approval of the TSX Venture Exchange. The
proceeds from the closing of sale of So Ver will be applied to the general
working capital of the Company.
Diamcor Mining is a junior resource company with established operations
and production history in South Africa. The Company is determined to use its
established operating history, industry knowledge, and proprietary
relationships to acquire and develop quality diamond properties in the region.
On behalf of the Board of Directors
Mr. Dean H. Taylor
Diamcor Mining Inc.
Phone: (250) 862-3212
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.
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The TSX Venture Exchange does not accept responsibility for the adequacy
or accuracy of this release.
For further information:
For further information: Mr. Dean H. Taylor, CEO, Diamcor Mining Inc.,
DTaylor@Diamcormining.com, Phone: (250) 862-3212, Website: