Diamcor Mining announces planned sale of non-core assets
Thursday, August 7th 2008
Diamcor Mining Inc., announces it plans to proceed with the disposition of certain of the Company’s So Ver mining assets. The Company will begin considering and evaluating various proposals from interested parties. The transaction may take the form of an asset sale or a sale of the Company’s subsidiary, So Ver (Pty) Ltd. The disposition of these non-core assets is part of the Company’s strategy to divest itself of current non-producing assets and re-deploy its resources to new mining opportunities that can provide near-term diamond production with long-term potential.
The So Ver non-core assets include landholdings comprising 556.7 hectares with certain portions having water rights suitable for various uses, mining permit rights for the remaining tailings at the property, reconditioned items associated with the five-story processing plant, and housing and workshops. The Company will retain ownership of certain processing equipment that will be re-deployed to new projects.
In addition to the immediate cost savings from the discontinuance of on-going maintenance of these non-core assets, the potential proceeds from the sale of these assets would be applied to the acquisition and development costs associated with the purchase of the Krone-Endora alluvial deposit from De Beers Consolidated Mining Company, previously announced on May 26, 2008.
Diamcor Mining is a junior resource company with established operations and production history in South Africa. The Company is determined to use its established operating history, industry knowledge, and proprietary relationships to acquire and develop quality diamond properties in the region.