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Tiffany & Co. signs strategic agreement and closes US$5.5 million financing with Diamcor Mining

Fasken
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Tiffany & Co.

On March 28, 2011, Diamcor Mining Inc. (TSX-V.DMI) announced that it had entered into a long-term strategic alliance and closed a financing with New York based Tiffany & Co. Tiffany & Co., in conjunction with its diamond sourcing and polishing subsidiary Laurelton Diamonds South Africa (Proprietary) Limited, and Diamcor, in conjunction with its subsidiary DMI Minerals South Africa (Proprietary) Limited, have entered into a strategic off-take agreement regarding future rough diamond production from the Krone-Endora at Venetia project, which Diamcor recently acquired from De Beers Consolidated Mines Limited.Under the terms of the agreement, Tiffany & Co., through Laurelton, secured a first right of refusal to purchase up to 100% of the production of rough diamonds from Krone-Endora at fair market value prices to be negotiated and adjusted from time-to-time to reflect current market conditions. DMI Minerals retains the right to freely market any rough diamond production and specials (rough diamonds 10.8 carats or larger in size) which are not selected for purchase by Laurelton. To expedite the production and supply of rough diamonds from Krone-Endora, Tiffany & Co. provided Diamcor with an aggregate amount of $5.5 million in financing through its subsidiary, Tiffany & Co. Canada. The financing includes a $3.5 million term loan and a $2 million convertible debt debenture.Tiffany & Co. was advised in the negotiation of this agreement and in the financing by Fasken Martineau with a team that included Georges Dubé, Laura Fetter and Susan Newell.

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