Diamcor Mining Inc. says it has raised C$5.82 million (US$4.48 million) from investors, with more than 90% of the units offered being acquired by institutional investors. The shares and warrants in the units offered must be held until January 1, 2017 before they can be sold. Proceeds from the Offering will be used for the acquisition of additional operational equipment and materials to support the continued advancement of the Company’s Krone-Endora at Venetia Project, and for general and administrative purposes.
In February 2011, Diamcor acquired the Krone-Endora at Venetia Project from De Beers Consolidated Mines Limited, consisting of the prospecting rights which represent a combined surface area of approximately 5,888 hectares directly adjacent to De Beers’ flagship Venetia diamond mine in South Africa. The Company has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada to purchase up to 100% of the future production of rough diamonds from the Krone-Endora at the 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 financing to advance the project.