Diamcor Mining announces diamond tender results
Diamcor Mining Inc. [DMI-TSXV; DMIFF-OTCQB; DC3A-FRA] announced it continued to achieve significant results in this quarter’s initial tender and sale of rough diamonds recovered from the processing of quarry material through its recently upgraded processing facilities at the its 70%-owned Krone-Endora at Venetia Project 500 km north-northeast of Johannesburg, South Africa.
In this sale completed just weeks into the quarter, a total of 2,516.91 carats of rough diamonds were sold, generating gross revenues of US$483,422.14, resulting in an average price of US$192.07 per carat for these diamonds. The company is targeting two additional tender and sales during the quarter in conjunction with the company’s long-standing associates, Koin International, at their new state of the art tender facilities in Dubai, UAE.
“We are very pleased with the results of this tender and sale in just the first two weeks of this quarter,” stated Dean Taylor, CEO. “In addition to these excellent results and positive start to the quarter, the recently completed phase one upgrades are continuing to demonstrate their potential for even further increases in processing volumes over the coming weeks.”
The deposits which occur on the properties of Krone and Endora have been identified as a 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 material from the higher grounds of the adjacent Venetia Kimberlite areas. The deposits on Krone-Endora occur in two layers with a maximum total depth of approximately 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.
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.
Diamcor has established a long-term strategic alliance and first right of refusal with Tiffany & Co. Canada, a subsidiary of 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. In conjunction with this first right of refusal, Tiffany & Co. Canada also provided financing to advance the project. Tiffany & Co. is owned by Moet Hennessy Louis Vuitton SE [LVMH-Paris (Euronext); LVMH-OTC].
Further to the warrant amendments announced in a news releases dated June 4, 2021 and August 6, 2021, the required accelerated expiry provision in the amended warrant terms has been triggered by the closing price of the company’s shares having exceed $0.375 for 10 consecutive trading days (the Premium Trading Days). The tenth Premium Trading Day occurred October 19, 2021. Accordingly, a reduced exercise period of 30 days will begin October 21, 2021. As a result, the amended warrants will now expire on November 20, 2021.
The two tranches of warrants (collectively, the expiring warrants) affected by the automatic acceleration of the expiry date are:2,857,975 warrants issued pursuant to a private placement financing that closed in June 2018 which were issued at $0.60 with an expiry date of June 20, 2021 and were subsequently repriced to $0.30 and extended up to a year, and1,755,157 warrants issued under a private placement that closed in August 2018 which were issued at $0.60 with an expiry date of August 29, 2021 and were subsequently repriced to $0.30 and extended up to a year.
The new expiry date of the warrants listed above is November 20, 2021. Any warrants that are unexercised will expire and be cancelled after 5:00 p.m. (Pacific time) on November 20, 2021.