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by Will Purcell

The diamond and specialty minerals stocks box score for Monday was a weak 61-100-149 as the TSX Venture Exchange fell fractionally to 603. Dean Taylor's Diamcor Mining Inc. (DMI) closed unchanged at four cents on 11,000 shares. The company has arranged to borrow $1.5-million in support of increasing production at its Krone-Endora at Venetia diamond mine, an alluvial and eluvial operation in the shadow of De Beers's Venetia kimberlite mine in South Africa.

Times are tough for diamond companies, and so are the terms for the 12-month unsecured loan. Not only does it bear an interest rate of 15 per cent, but the lender will get 150,000 shares accompanied by 75,000 seven-cent warrants for each $100,000 lent. Should Diamcor borrow the entire $1.5-million, the lender will get 2.25 million Diamcor shares, currently worth $90,000, along with 1.13 million warrants. Further, both the principal and interest come due one year after the loan closes.

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