Diamcor Mining Inc. yesterday said that the Company’s term loan financing announced in its news release of July 4, 2019 has been amended.

“The Company has received subscriptions under the amended loan financing (the “Financing”) for aggregate gross proceeds of CDN$1,188,000 (the “Proceeds’),” Diamcor said.  “The previously announced initial $500,000 term loan has also been amended and is included in the Proceeds.”

The Company said it has submitted the “required notification documentation” for the Financing to the TSX Venture Exchange. “Term loans under the Financing will be unsecured, carry an annual interest rate of 7% payable at maturity and, subject to the approval of the Exchange, the Company will issue a total of 1,425,600 common shares in its authorised share capital, along with 712,800 share purchase warrants, to the lenders pursuant to Policy 5.1 of the TSX Venture Exchange Corporate Finance Manual,” Diamcor clarified.  

Further, the Company said that the principal and interest of the Term Loan is due and payable on the 12-month anniversary of the closing date; and that each share purchase warrant is exercisable to purchase an additional common share at a price of $0.16 per share for a period of 12 months. 

“Certain directors and employees of the Company, including two corporate subscribers, each of which is controlled by a different director, have subscribed for an aggregate of $155,000 of the Proceeds and, subject to the approval of the Exchange, the Company will issue an aggregate of 186,000 common shares and 93,000 Warrants, which are included in the totals noted above,” the Company stated.

Spelling out the purposes for which the Financing has been undertaken, Diamcor noted that the  proceeds 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 Company’s Krone-Endora at Venetia Project, and to provide the Company with additional working capital to offset the time frames associated with the tendering and sale of rough diamonds in Antwerp”.

For the Financing process to be completed, all necessary regulatory procedures have to be followed and the approval of the TSX Venture Exchange has to be received. “All securities issued pursuant to the above will be subject to a hold period of four months plus one day following the closing,” the Company noted.