Diamcor to partner with SA’s Bbbee Group

Diamcor Mining Inc. announces the agreement to enter into a formal joint venture arrangement with Nozala Investments (Pty) Ltd (Nozala), a well established South African Broad-Based Black Economic Empowerment (BBBEE) company, that is controlled and managed by women.

Both companies will immediately execute agreements to reflect this arrangement through two of Diamcor’s dormant wholly-owned South African subsidiaries, DMI Minerals South Africa (Pty) Ltd. and Jagersfontein Diamond Mining Company (Pty) Ltd., both of which were formed to pursue diamond mining opportunities in South Africa. Subject to exchange approval, under the terms of the joint venture,

Diamcor will retain a 70% direct ownership in the two subsidiaries and Nozala will acquire a 30% direct shareholder ownership interest. Operationally, the disbursement of expenses charged to the development of projects held by the two entities, and the revenues generated, will be allocated proportionally between Diamcor and Nozala. Diamcor considers the joint venture a positive achievement because not only is Nozala a respected and established BBBEE group, but it is also a well-connected corporate entity in the South African business community, both of which are expected to enhance Diamcor’s ability to achieve its stated growth objectives of acquiring and developing long term, high profile projects within South Africa.

Diamcor and Nozala have developed clear operational objectives and guidelines to ensure that both subsidiary-entities will achieve, and exceed, all requirements established to measure the ongoing compliance of companies under the new BBBEE Charter as required by the South African Department of Minerals and Energy for the South African Mining Industry. The goals and vision of the Charter are well-defined with critical elements to be attained in order for a company to acquire, or continue to operate, mining projects within South Africa in the future. The Charter focuses on the pursuit of a shared vision for a globally competitive mining industry that draws on the human and financial resources of all South Africa’s people and aims to offer real benefits to all South Africans. Diamcor has long viewed the establishment of a strong, successful and focused BBBEE strategy as being a critical element of its future success and growth within South Africa.

Established in 1996 as a BBBEE company, Nozala represents an ongoing success story within South Africa. Accordingly as noted on their corporate website, Nozala’s vision is to be the premier empowerment company led by women in South Africa and they have ensured this economic advancement of women by promoting constructive business partnerships with leading business entities, labour unions and leaders in South African business and commerce. Nozala actively targets investments in companies where the involvement of an active BBBEE partner can materially add to, or enhance, shareholder value by accessing opportunities or markets not otherwise accessible.

Nozala’s founding members are comprised of a diverse and successful group of individuals with previously established track records in corporate businesses, banking and government posts within South Africa; and as a company, has active ownership positions in various large South African corporations with interests in industries such as coal, mineral sands, base and industrial metals, iron ore, oil and crude oil procurement, blending and refinery, telecommunications, shipping ports, diamond polishing facilities, banking, industrial plants and heavy equipment hire. Additionally, Nozala has been awarded a diamond polishing and cutting license from the South African Diamond Board and has been appointed as one of the diamond siteholders for De Beers South Africa.

We are extremely proud of the collective effort expended by both parties in working toward establishing this key relationship and we look forward to now working together to secure future opportunities which will allow us to achieve our respective ongoing growth objectives, said Dean Taylor, President and CEO of Diamcor Mining Inc.

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