Canada-based diamond producer Diamcor Mining has closed the non-brokered private placement to finance operation at the company’s flagship Krone-Endora at Venetia Project in Limpopo province, South Africa.

The company issued 1.58-million units at a price of $1.25 each for gross proceeds of $1.98m.

These proceeds will be used for operating capital to support the advancement of Krone-Endora at Venetia Project, planned acceleration of ongoing operations, the continued processing of material in order to recovering additional rough diamonds for planned sales in the short-term.

The financing will also support the company’s general and corporate purposes.

Diamcor acquired Krone-Endora at Venetia Project from De Beers Consolidated Mines in February 2011.