Diamondex closes first tranche of financing
Diamondex Resources Ltd DSP
Shares issued 27,939,289 Oct 24 close $0.70
Thu 24 Oct 2002 News Release
Mr. Randy Turner reports
DIAMONDEX RESOURCES LTD. CLOSES PRIVATE PLACEMENT
Further to news reported in Stockwatch on Sept. 19, 2002, the first tranche of the private placement has closed for gross proceeds of $4,466,752.50. Subsequent to the news release, the number of flow-through units (the
flow-through units) was increased from 4,666,667 to six million
flow-through units so that the company's private placement now comprises up to eight million units (the units), consisting of up to six million flow-through units and up to two million non-flow-through units (the non-flow-through units). The first tranche, which closed on Oct. 23, 2002, consisted of 5,955,670 units, comprising 5,905,670 flow-through units and 50,000 non-flow-through
units at 75 cents per unit. Each flow-through unit comprises one
flow-through common share (a flow-though share) and one-half of one non-transferable share purchase warrant (a warrant). One whole warrant entitles the placee to purchase one additional non-flow-through common share (a warrant share) of the company for a period of 12 months from Oct. 23, 2002, at a price of 85 cents per warrant share. Each non-flow-through unit comprises one common share (a non-flow-through share) and one warrant. In addition, 595,567 share purchase warrants (the agents' warrants) were issued to the agents. One agent's warrant entitles the agents to purchase one warrant share (an agent's warrant share) of the company for a period of 12 months from the date of closing of the transaction at 75 cents per agent's warrant share. The common shares and any shares issued on the exercise of the warrants forming a part of the units and any shares issued on exercise of the agents' warrants will be subject to hold periods expiring on Feb. 24, 2003. The company anticipates that the second tranche of the private placement will close in early November. Proceeds of the flow-through offering will be used on the company's projects in the Northwest Territories, Nunavut and the province of Quebec. |
