Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion of our financial condition, changes in financial condition and results of operations for the three month period ended October 31,
2014 and 2013 should be read in conjunction with our unaudited condensed consolidated interim financial statements and related notes for the three month
periods ended October 31, 2014 and 2013. The following discussion contains forward-looking statements that involve risks, uncertainties and assumptions.
Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not
limited to, those referenced under the heading “Risk Factors” and included in our annual report on Form 10-K for the year ended July 31, 2014, filed with the
Securities and Exchange Commission on October 29, 2014.
Overview of Our Business
Our Company was incorporated under the laws of the State of Nevada, U.S. on October 26, 2010 as Oconn Industries Corp. On March 11, 2014, the Company
changed its name to Diamante Minerals, Inc. We are in the process of acquiring,exploring and developing mineral properties.
On February 10, 2014, we entered into a letter agreement with Mineracao Batovi Ltda., a Brazilian mineral exploration and mining company, to acquire up to a
75% interest in a diamond exploration project located to the north of Paranatinga in Mato Grosso, Brazil (the “Batovi Diamond Project”) and form a
joint venture valued at approximately $12 million.
Throughout the quarter ended October 31, 2014, we were focused on the due diligence required for this project, and the negotiation of the definitive
agreement with Mineracao Batovi that was executed and delivered after the end of the period covered by this quarterly report, on November, 20, 2014. As
described in more detail below, we will contribute $1,000,000 in cash to a new joint venture company to be formed in Brazil (“Newco”), in return for a 20%
equity interest, and Mineracao Batovi will contribute the mineral claims underlying the Batovi Diamond Project to Newco in return for an 80% equity
interest. We may earn an additional 29% equity interest in Newco by funding $2,000,000 of Newco’s exploration expenses no later than November 20, 2017.
We currently have no interests in any other mineral exploration projects.
Results of Operations
We have generated no revenues since inception and have incurred $5,256,638 in expenses during the three months ended October 31, 2014.
The following table provides selected financial data about our company for the three months ended October 31, 2014 and the year ended July 31, 2014.