Diamcor Mining intends to complete a term loan financing of up to CDN$1 million and has received an initial commitment of CDN$500,000 from one of its largest investors, along with expressions of interests from several other parties.
Proceeds from the loan will be used for general corporate purposes, the deployment of additional operational equipment to support increased processing volumes, the continued advancement of the work programmes currently underway at the Krone-Endora at Venetia Project, in South Africa.
It will also provide the company with additional working capital to offset the time frames associated with the tendering and sale of rough diamonds in Antwerp.
Term loans under the financing, including the initial term loan, will be unsecured, carry an annual interest rate of 7% payable at maturity.
Diamcor will issue 120,000 common shares in its authorised share capital, along with 60,000 share purchase warrants, for every CDN$100,000 of principal advanced under the financing.
The term loan transaction is subject to regulatory approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required.