The funds will be raised by issuing up to 3,000,000 units on a brokered and non-brokered basis at a price of C$1 per unit.
Each unit will comprise one common share and one-half of one common share purchase warrant, which will allow the holder to purchase one share at a price of C$1.25 for 36 months.
Roth Capital Partners has been appointed as the lead agent, while Euro Pacific Canada will manage the brokered portion of the offering.
The offering is subject to the receipt of approval from the TSX Venture Exchange as well as completion of definitive documentation and filings.
Diamcor Mining concluded acquisition of Krone-Endora at Venetia project in February 2011 and is now targeting a return to scaled production.
Said to be the third largest diamond mine in the world, the Venetia mine accounts for more than 50% of annual diamond output in South Africa.
