South Africa-focused diamond producer Diamcor Mining is seeking funds of upto $1.87m through a nonbrokered private placement to finance operations at its flagship Krone-Endora at Venetia project.

The company is placing about 1.5 million units at a price of $1.25 each, with each unit comprising one common share and half a common share purchase warrant. Each whole warrant will subject the holder to buy a share at a strike price of $1.75 for a period of 36 months after the date it was issued.

Meanwhile, the project located in Limpopo province has recorded declined output due to very heavy rainfall during the first quarter of 2013.

Bad weather conditions have restricted company’s processing capacity at levels targeted for the short-term, besides reducing its potential to complete the sale of rough diamonds to secure expected revenues during the period, the company stated.

Nevertheless, the operations at the mine are being resumed with proceeds from the placement will be used to ramp up production.