Diamcor Mining awarded successful bid for the De B
Diamcor Mining awarded successful bid for the De Beers Krone-Endora alluvial deposit
5/26/2008 10:31:42 AM - Canada NewsWire
KELOWNA, BC, May 26, 2008 (Canada NewsWire via COMTEX News Network) --
/THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES, TO
"U.S. PERSONS" OR TO UNITED STATES OF AMERICA NEWS SERVICES./
TSX.V Symbol (DMI)
KELOWNA, BC, May 26 /CNW/ - Diamcor Mining Inc. (TSX-V:DMI) (the "Company"), through its 70%-owned South African subsidiary, DMI Minerals South Africa (Proprietary) Limited ("DMI South Africa"), has received confirmation from De Beers Consolidated Mines Limited ("De Beers") that its proposal to acquire the Krone-Endora alluvial deposit (the "Deposit") has been approved as the successful proposal ("Acquisition"). The Deposit consists of prospecting rights over the farms Krone 104 and Endora 66, both located adjacent to the De Beers Venetia Diamond Mine in the Limpopo Province of South Africa, which is widely known, based on De Beers' published production reports, to be one of South Africa's largest producers of diamonds.
The Acquisition is subject to definitive acquisition documents between DMI South Africa and De Beers, financing of 14,000,000 Rand (approximately CAD$1,818,600), government permission to cede prospecting rights from De Beers to DMI South Africa, the assignment to DMI South Africa of the existing environmental and rehabilitation liability and TSX Venture Exchange approval.
As part of the Acquisition, De Beers will convey to DMI South Africa all related historical exploration data and materials relating to the Deposit. Upon completion of the Acquisition and the transfer of prospecting rights, DMI South Africa will immediately commence bulk sampling and evaluation work based on the previous work completed on the Deposit by De Beers. These evaluations will be used by the Company to delineate the future work necessary to enable the Company to arrive at a production decision with respect to the Deposit.
The Acquisition represents the Company's first for its DMI South Africa subsidiary in conjunction with previously announced 100% women-owned Black Economic Empowerment partner Nozala Investments (Pty) Ltd. ("Nozala"). This partnership, under which Nozala will have a 30% interest in DMI South Africa, has been designed to draw on the considerable synergies of the two entities with an ability to provide broad-based economic benefit and support for the emerging South African diamond polishing industry with the planned contract polishing of suitable diamonds from the Deposit through Nozala's established Nozala Diamonds (Pty) Ltd subsidiary facilities in South Africa.
Diamcor Mining is a junior resource company with established operations and production history in South Africa. The Company is determined to use this established operating history and industry knowledge to increase its current production of diamonds through the development and or, acquisition of additional quality properties in the region with its Nozala partners.
On behalf of the Board of Directors
Mr. Dean H. Taylor
CEO
Diamcor Mining Inc.
DTaylor@Diamcormining.com
Phone: (250) 862-3212
Website:
www.diamcormining.com
This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Further, the Company expressly disclaims any obligation to update any forward looking statements. Accordingly, readers should not place undue reliance on forward-looking statements. This news release is not for dissemination in the United States, to "U.S. Persons" or to United States of America news services.
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SOURCE: Diamcor Mining Inc.
Mr. Dean H. Taylor, CEO, Diamcor Mining Inc., DTaylor@Diamcormining.com, Phone: (250) 862-3212, Website:
www.diamcormining.com
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