Diamcor Secures $4.0 Million Additional Financing From New York Based Tiffany
TSX.V Symbol (DMI)
/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES, TO "U.S.
PERSONS" OR TO UNITED STATES OF AMERICA NEWS SERVICES./
KELOWNA, BC, Nov. 16, 2012 /CNW/ - Diamcor Mining Inc. (TSX-V.DMI) (the
"Company") is pleased to announce that it has obtained an additional $4.0
million in financing from its long-term strategic alliance partner, world
famous premier luxury jewellery and specialty retailer Tiffany & Co.
("Tiffany"). The $4,000,000 in financing will be provided by Tiffany's
subsidiary, Tiffany & Co. Canada, via a $2,400,000 term loan (the "Term Loan")
and a $1,600,000 convertible debt debenture (the "Convertible Debenture").
The transaction is subject to final acceptance by the TSX Venture Exchange.
The Term Loan has a fixed rate of interest of 9% and is secured by a
promissory note (the "Promissory Note") which is non-amortizing until January
2014, at which time principal and interest is payable monthly in accordance
with a 36 month amortization schedule. The Company has the right to repay
the outstanding principal and any accrued and unpaid interest due under the
Promissory Note at any time without notice or penalty.
The Convertible Debenture has a fixed rate of interest of 9% per annum, and is
non-amortizing until January 2014, following which time principal and interest
is payable monthly in accordance with a 36 month amortization schedule. The
Company has the right to repay the outstanding principal and any accrued and
unpaid interest, without penalty, on not less than 30-days' notice and subject
to the conversion rights contained in the Convertible Debenture. Under the
conversion rights of the Convertible Debenture, Tiffany & Co. Canada may
convert the principal amount of $1,600,000, along with any accrued and unpaid
interest due at that time, in whole or in part, into Class A Common Shares
(the "Shares") of the Company at a conversion price of CAD $1.60 per Share.
Under the conversion scenario, a maximum of 1,090,000 Shares in the Company
would potentially be issued. Any Shares issued upon the conversion of any
amounts due under the Convertible Debenture will be subject to a hold period
which expires four months and one day from the date of issuance of the
The sourcing, negotiation and successful completion of this additional
financing transaction with Tiffany & Co. were completed by the Company's
management and directors. As a result, no brokerage or finder's fees were
incurred by the Company.
As part of the commissioning and testing exercises underway at the Project,
Company executives in conjunction with various equipment manufacturers and
engineering firms continuously evaluated material from the deposit, the
current quarrying and in-field screening equipment, and in certain cases
performed tests on new equipment using material from the Project. As a
result of these efforts, the Company believes the deployment of additional
dry-scrubbing and screening equipment will not only more efficiently treat
material in the +10mm size fraction, but also further enhance the treatment of
all material and provide additional operational efficiencies and enhance
recoveries over the long-term. In conjunction with the closing of this
additional financing, the Company plans to proceed with the immediate
procurement of this equipment and expand the current capabilities of the
quarrying and in-field screening operations. Additional information on the
equipment being added will be provided by the Company in a separate news
release in the coming weeks.
"We are very pleased with the continued support of our strategic alliance
partner Tiffany and Co. and their willingness to support our expansion plans"
commented Diamcor President and Chief Executive Officer, Mr. Dean H. Taylor,
"We believe deploying this additional equipment now will allow us to further
enhance results which are already meeting or exceeding our expectations, and
provide us with the ability to expedite our overall goals and targets for the
long-term", added Mr. Taylor.
Project Status Overview:
The extensive planning, development and construction of site infrastructure at
Krone-Endora at Venetia was successfully completed over a period of less than
18 months, which has positioned the Company to now further advance the
development of the Project and pursue near-term production. Following the
completion of the above-mentioned commissioning and testing exercises, the
Company plans to focus on achieving targeted staged monthly operational
increases through a move to trial mining to provide the Company with
production and cash flow. The Company anticipates that the move to full
scale mining will coincide with the confirmation by the South African
Department of Mineral Resources of the issuance of a mining right which has
been applied for and is currently in process. In conjunction with the full
scale mining exercises, the Company also plans to carry out a bulk sampling
programme on new areas of the Project not previously accounted for in the
initial NI 43-101 Technical Report filed by the Company as part of the
acquisition process. These efforts are designed to support the future filing
of an updated NI 43-101 Technical Report, and to assist Management when
developing long-term production targets and decisions for the Project.
Strategic Tiffany & Co. Alliance:
As announced on March 29, 2011, the Company has established a long-term
strategic alliance and first right of refusal with world famous New York based
Tiffany & Co. to purchase up to 100% of the future production of rough
diamonds (excluding Specials, individual stones of 10.8 carats or greater)
from the Krone-Endora at Venetia Project at current prices to be determined by
the parties on an ongoing basis. In conjunction with this right of first
refusal, Tiffany & Co. 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. Originally founded in 1837, the Tiffany's 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 July 31, 2012 Tiffany & Co. operated 260 stores and
boutiques in the Americas, Japan, Asia-Pacific, and Europe and engages in
direct selling through internet, catalog and business gift operations. For
additional information on Tiffany & Co., please visit their website at
About Krone-Endora at Venetia:
On February 28, 2011, Diamcor successfully 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. Commissioning of
the processing plant is now underway, and the Company's current efforts are
designed to be a continuation of the ongoing advancement of the Project.
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, and
extensive experience supplying rough diamonds to the world market. 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.
On behalf of the Board of Directors
Mr. Dean H. Taylor
President & CEO
Diamcor Mining Inc. DTaylor@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
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.
Mr. Dean H. Taylor President & CEO Diamcor Mining Inc.
Phone:(250) 864-3326 Website:www.diamcormining.com
SOURCE: Diamcor Mining Inc.
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CO: Diamcor Mining Inc.
ST: British Columbia
NI: MNG FIN
-0- Nov/16/2012 19:41 GMT
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