Struggling Diamcor Misses Audit Deadline
July 31, 25
(IDEX Online) - Canadian junior diamond miner Diamcor told regulators it wouldn't be filing financial statements on time - because of ongoing financial problems and an unsettled debt with Tiffany & Co.
Under a long-term strategic alliance, Tiffany had the option to buy all Diamcor's future rough diamond production at market prices, in exchange for financing the expansion of its Krone-Endora at Venetia project, in South Africa.
But Diamcor hasn't been able to repay installments on a loan of CAD 6.8m (USD 4.7m), which was later reduced to CAD 3.5m (USD 2.4m).
And in response Tiffany has threatened to take legal steps towards seizing its assets, though it has not yet done so.
Diamcor said in a statement dated 29 July: "The delay has been caused by the inability of the company to complete its funding objectives underway and the associated funding transactions due to the well documented industry wide supply chain disruptions and the resulting uncertainty surrounding the impact of US imposed tariffs, compounded by the recent actions undertaken by a major creditor, Tiffany & Co. Canada."
Meanwhile Diamcor, knowing it would miss the 29 July deadline for financial disclosures relating to the year to 31 March 2025, applied for a Management Cease Trade Order, which temporarily restricts directors from trading the company's shares.
Diamcor said it hoped to finalize arrangements with Tiffany to defer any formal insolvency proceedings and to complete its funding objectives.
It also said it planned to complete all necessary filings with both Canadian and South African auditors.
File pic of Diamcor diamonds.