Diamonds plans $2,502,500 financing; closes another
Diamonds North Resources Ltd DDN
Shares issued 10,001,033 Nov 6 close $0.70
Wed 6 Nov 2002 News Release
Mr. Maynard Brown reports
DIAMONDS NORTH PRIVATE PLACEMENT
Diamonds North Resources has negotiated a brokered private placement with a syndicate led by Dundee Securities and including Haywood Securities Inc. to raise up to $2,502,500. The private placement will comprise up to 3,575,000 flow-through units at a price of 70 cents per unit. Each unit will consist of one flow-through common share and one-half of a non-transferable common share purchase warrant. Each whole common share purchase warrant will entitle the holder to purchase one common share at a price of 80 cents per common share for a period of 12 months after the closing date. No flow-through benefits will be attached to any common shares issued upon the exercise of the common share purchase warrants. The agents will be paid a cash fee equal to 7.5 per cent of the gross proceeds raised in the offering. The agents will also receive broker warrants entitling them to purchase that number of common shares which is equal to 10 per cent of the number of units sold. The broker warrants will expire 12 months after the closing date. The exercise price for the broker warrants will be 70 cents per common share. The flow-through shares, the warrant shares and the agents' warrants will be subject to a hold period of four months plus one day from the closing date which will be on or about Nov. 28, 2002. The gross proceeds of the units shall be used for the development of the company's projects in Canada. Diamonds North also announces the completion of the non-brokered private placement announced in Stockwatch Oct. 15, 2002. The 111,000 units were distributed Oct. 30, 2002, and are subject to a hold period and may not be traded until March 1, 2003. |
