/NOT FOR DISSEMINATION IN THE UNITED STATES OR VIA U.S. NEWSWIRE
TSX Venture Exchange: DDN
VANCOUVER, June 19 /CNW/ - Diamonds North Resources Ltd. (TSX-V: DDN)
(the Company) is pleased to announce a bought-deal private placement with a
syndicate of underwriters led by Canaccord Capital Corporation and including
Dundee Securities Corp., GMP Securities L.P. and Haywood Securities Inc.
(collectively, the "Underwriters") of 1,905,000 units (the "Units") at a price
of $1.05 per Unit and 6,667,000 flow-through common shares ("Flow-Through
Shares") at a price of $1.20 per Flow-Through Share for aggregate proceeds of
$10,000,650 (the "Offering"). A Unit will consist of one common share and
one-half of one transferable common share purchase warrant (a "Warrant"). Each
whole warrant will entitle the holder to subscribe for one additional common
share at a price of $1.30 for a period of one year from the date of closing.
The Company also intends to complete a non-brokered private placement to
raise up to $2,000,000 through the sale of a combination of Flow-Through
Shares and Units.
In consideration for their efforts, the Underwriters will be paid a
commission of 6% of the total proceeds raised in the Offering upon closing
payable in cash. In addition, the Underwriters will receive underwriters'
warrants ("Underwriters' Warrants") equal to 6% of the securities issued
pursuant to the Offering. Each Underwriters' Warrant will be exercisable to
acquire one common share for a period of twelve months from the closing at a
price of $1.30 per share.
The Company has also granted the Underwriters an over allotment option to
purchase additional, Flow-through Shares of $500,040 and Units of $1,500,030
for aggregate additional gross proceeds of CDN$2,000,070 exercisable 48 hours
prior to closing.
The funds raised from the issuance of the Flow-Through Shares shall be
used for general exploration expenditures which will constitute Canadian
Exploration Expenditures ("CEE"). The funds raised from the issuance of the
Units will be used for the advancement of the Company's mineral assets and for
general working capital purposes.
Diamonds North has discovered 25 kimberlites to date on the Amaruk
property. Of the 22 analyzed kimberlites, more than 90% of the known
kimberlites are diamondiferous and 50% exhibit diamond counts that require
follow-up exploration. At least 500 geophysical targets remain to be tested on
Diamonds North Resources is focused on discovering Canada's next diamond
mine. The Company is rapidly evolving and committed to building long-term
value through ongoing diamond discoveries.
On behalf of Diamonds North Resources Ltd.
Mark Kolebaba President & CEO
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Statements in
this press release, other than purely historical information, including
statements relating to the Company's future plans and objectives or expected
results, may include forward-looking statements. Forward-looking statements
are based on numerous assumptions and are subject to all of the risks and
uncertainties inherent in resource exploration and development. As a result,
actual results may vary materially from those described in the forward-looking
For further information:
For further information: Nancy Curry, VP Corporate Communications,
Diamonds North Resources Ltd., Telephone: (604) 689-2010, Facsimile: (604)
484-7143, Email: firstname.lastname@example.org; Website: www.diamondsnorth.com