Diagem funds Brazil work

To finance ongoing exploration in southwestern Brazil, Diagem International Resource (DGM-V) has raised $200,000 in a private placement.

The company sold 1.1 million units at 18 cents each. A unit consists of one share and one half-share purchase warrant. Each warrant entitles the holder to buy an additional share at 25 cents in the first year and 30 cents in the second. The units are subject to a hold period that expires Nov. 27.

No kimberlites were intersected during a 1,400-metre drill program at the Chapada diamond property in Mato Grosso state. However, in preparation for further drilling, ground geochemical work is attempting to trace the source of some newly discovered pyrope garnets (kimberlite indicator minerals).

A change in Brazil’s mining code has prompted the company to drop its Diamantino property, 300 km southeast of Chapada. Diagem says the government has become significantly more aggressive in processing mineral rights and collecting licensing fees.

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