Kelowna, Canada — MININGREVIEW.COM — 28 May 2008 – Diamcor Mining Inc. – a successful Canadian junior diamond mining and exploration company listed on the Canadian TSX Venture Exchange – is to acquire the Krone-Endora alluvial diamond deposit in South Africa from De Beers Consolidated Mines Limited.
A news release issued here confirmed that Diamcor – through its 70%-owned South African subsidiary DMI Minerals South Africa (Pty) Limited – had been successful in its bid for the deposit. The deposit consists of prospecting rights over the farms Krone 104 and Endora 66 – both adjacent to the De Beers Venetia Diamond Mine in the Limpopo Province of South Africa, which is widely known 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 R14 million; 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.
The release added that as part of the acquisition, DeBeers would 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 would immediately commence bulk sampling and evaluation work based on the previous work completed on the deposit by De Beers. These evaluations would be used by the company to delineate the future work necessary to enable it to arrive at a production decision with respect to the deposit.
The acquisition represents Diamcor’s first for its DMI South Africa subsidiary, in conjunction with previously-announced, 100% women-owned, Black Economic Empowerment partner Nozala Investments (Pty) Ltd.
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. It offers the ability to provide broad-based economic benefit and support for the emerging South African diamond polishing industry through the planned contract polishing of suitable diamonds from the deposit through Nozala’s established Nozala Diamonds (Pty) Ltd subsidiary facilities in South Africa.