Diamcor Mining announces private placement

    
    /THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES, TO
    "U.S. PERSONS" OR TO UNITED STATES OF AMERICA NEWS SERVICES/

    TSX.V Symbol (DMI)
    
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<p>KELOWNA, BC, <chron>Oct. 15</chron> /CNW/ - Diamcor Mining Inc. (TSX-V:DMI) (the "Company"), announces that it intends to complete a non-brokered private placement (the "Offering") of up to 16,666,667 units (the "Units") at a price of <money>$0.30</money> per Unit for gross proceeds of up to <money>$5,000,000</money>. Each Unit will consist of one common share (a "Share") of the Company and one-half of one common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the holder thereof to purchase one Share at an exercise price of <money>$0.50</money> for a period of 24 months following the closing of the Offering.</p>
<p>Proceeds from the Offering will be used to fund all costs associated with the finalization of the purchase of the Krone-Endora alluvial diamond deposit (the "Deposit") from De Beers Consolidated Mines Limited ("De Beers"), for project planning and the purchase of various equipment to be used in the recommended post-closing trial mining efforts on the Deposit, and in part for general corporate purposes.</p>
<p>As previously disclosed in a news release on <chron>May 26, 2008</chron>, the Company's proposal, through its 70%-owned South African subsidiary DMI Minerals <location>South Africa</location> (Proprietary) Limited, was chosen as the successful proposal to acquire the Deposit and the Company is now in the final stages of satisfying the remaining conditions of closing. Subsequent to that release on <chron>July 30, 2009</chron>, the Company announced the filing of a National Instrument 43-101 independent technical report (the "Technical Report") for the Deposit which consists of prospecting rights over the farms Krone 104 and Endora 66, both located adjacent to the De Beers Venetia Diamond Mine in the Limpopo Province of <location>South Africa</location>. The independent Technical Report provided the conclusion that the Deposit is not only an "alluvial" deposit, but a combination of an alluvial and "eluvial" deposition indicating an expected "direct shift" of basal or lower source material from the higher grounds of Venetia, with an inferred resource estimate of 54,258,600 tonnes of diamond-bearing gravels and 1.3 million carats of diamonds. Due to these characteristics it was also reported that the diamond deposit mineralization appears generally uniform throughout the Deposit which is unique, as opposed to that of a typically higher risk alluvial deposit whereby larger areas can be barren with only intermittent individual trap sites bearing diamonds. Given the historic exploration performed previously on the Deposit and the significant understanding of the Deposit formation, the report recommended additional closer grid drilling to obtain more detailed contact depths and gravel thicknesses to locate possible positions for additional trap sites and enriched mining zones in conjunction with a recommended move to initial trial mining exercises.</p>
<p>The transaction is subject to regulatory, and/or approval of the TSX Venture Exchange along with completion of all definitive documentation and filings as required. Securities issued pursuant to the above will be subject to a hold period of four months plus one day following the closing.</p>
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<p>Diamcor Mining is a junior resource company with established operations and production history in <location>South Africa</location>. The Company is determined to use this established operating history and industry knowledge to increase its current production of diamonds through the development and or, acquisition of additional quality properties in the region.</p>
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    On behalf of the Board of Directors

    Mr. Dean H. Taylor
    President & CEO
    Diamcor Mining Inc.
    
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<p>This press release contains certain forward-looking statements. While these forward-looking statements represent our best current judgement, they are subject to a variety of risks and uncertainties that are beyond the Company's ability to control or predict and which could cause actual events or results to differ materially from those anticipated in such forward-looking statements. Further, the Company expressly disclaims any obligation to update any forward-looking statements. Accordingly, readers should not place undue reliance on forward-looking statements.</p>
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For further information: Mr. Dean H. Taylor, President & CEO, Diamcor Mining Inc., [email protected], Phone: [phone], Website: www.diamcormining.com