Diamcor Raises Money to Buy DBCM Diamond Deposit

Diamcor Mining Inc. has secured $400,000 in term loans from various investors and one insider. The term loans will carry an annual interest rate of 10 percent. The proceeds will be used to support project planning for the acquisition of the Krone-Endora alluvial diamond deposit from De Beers Consolidated Mines Limited.

The company issued 400,000 common shares in its authorized share capital to the lenders on December 1. The principal and interest of the term loans are due and payable on the six-month anniversary of the closing date.

Diamcor anticipates closing a $5 million private placement within the next 45 days. Proceeds from the offering will be used to fund the remaining purchase of the Krone-Endora Deposit.

Diamcor Mining is a junior diamond resource company operating in South Africa.