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Diamcor Mining Inc (2)
Symbol DMI
Shares Issued 60,375,573
Close 2018-08-29 C$ 0.31
Market Cap C$ 18,716,428
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Diamcor closes $1.22M final tranche of placement

2018-08-29 19:15 ET - News Release

Mr. Dean Taylor reports

DIAMCOR CLOSES SECOND TRANCHE OF FINANCING AND RESUMES TENDERING ROUGH DIAMONDS

Diamcor Mining Inc., further to its news release of June 20, 2018, whereby the company announced the closing of a first tranche of its revised non-brokered private placement of units for gross proceeds totalling $2,000,582.50, has now closed a second and final tranche of the financing, resulting in the issuance of 3,510,315 additional units for proceeds totalling $1,228,610.25. Each unit consists of one common share of the company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one share at an exercise price of 60 cents until Aug. 29, 2021. Securities issued pursuant to the final tranche of the financing will be subject to a hold period ending on Dec. 30, 2018. Units and subscription proceeds for subscriptions received from members of the pro group will be held in escrow until such time as the TSX Venture Exchange final approval to the offering is received, which approval is expected by the end of business today.

The company further announces that, as part of the second tranche closing, the company has paid to two finders an aggregate cash commission of $6,510.00, representing 6 per cent of the gross proceeds received from subscribers introduced to the company by such finders, and has issued an aggregate of 18,600 non-transferable warrants to such finders, representing 6 per cent of the number of units sold to subscribers introduced to the company by such finders. Each finder's warrant entitles the holder to purchase one share of the company at an exercise price of 60 cents until Aug. 29, 2021. The finders' warrants will also be subject to a hold period ending on Dec. 30, 2018.

The proceeds of the second and final tranche, along with the proceeds from the tendering of rough diamonds as discussed below, will allow the company to continue to proceed with efforts to improve recoveries of water from the project's settling dams to support planned increases in processing volumes at the project for the long term. The second and final closing of the revised offering is subject to the approval of the TSX Venture Exchange as noted, along with completion of all definitive documentation and filings as required. As noted, additional securities issued pursuant to the revised offering will be subject to a hold period of four months plus one day following the date of their issuance.

Rough diamond tender update

The company is pleased to announce that processing through the previously announced initial screening modifications made to the company's Krone-Endora at Venetia facilities is meeting management expectations, and a total of 2,618.79 carats of rough diamonds recovered from initial day-shift-only processing over a period of three weeks have been delivered to Antwerp for tender in the coming week. Rough diamonds tendered will include the previously announced plus-10.8-carat special category rough diamonds recovered during the same period.

"Our revised facilities are demonstrating their effectiveness in reducing the fines issue, and the results of initial processing, along with the recovery of larger special rough diamonds, is promising," noted Diamcor chief executive officer Dean Taylor. "A two-staged approach of first refining the facilities' crushing and screening efficiencies prior to the installation of paste thickening is proving effective, as it is providing us with the ability to increase processing volumes as expected, with the results of those efforts aimed at reducing the relative size of the paste thickener, and the associated costs, for the long term," added Mr. Taylor.

About Diamcor Mining Inc.

Diamcor Mining is a fully reporting publicly traded junior diamond mining company which is listed on the TSX Venture Exchange under the symbol V.DMI and on the OTCQB International under the symbol DMIFF. The company has a well-established operational and production history in South Africa, and extensive prior experience supplying rough diamonds to the world market.

Qualified person statement

James P. Hawkins (BSc, PGeo) is manager of exploration and special projects for Diamcor Mining, and the qualified person in accordance with National Instrument 43-101 responsible for overseeing the execution of Diamcor's exploration programs, and a member of the Association of Professional Engineers and Geoscientists of Alberta (APEGA). Mr. Hawkins has reviewed this press release and approved of its contents.

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