DiamondWorks announces CDN$6.5 million financing
VANCOUVER, April 27 /CNW/ - DiamondWorks Ltd. today announced that it has
filed notice of private placement with the Toronto Stock Exchange for the
placement of up to 28,035,000 units at a price of CDN$0.23 per unit for total
proceeds of approximately CDN$6.5 million. The funds will be used to advance
the development of the company's diamond properties. Each unit consists of one
common share and one common share purchase warrant. Each share purchase
warrant will entitle the holder to acquire one common share of the company at
an exercise price of CDN$0.23 for a period of one year after closing. Ekuseni
Resources Limited, a company controlled by Brian Menell, a DiamondWorks'
director, has agreed to purchase approximately CDN$5.9 million of the private
placement. Invesco Trading SA, a company controlled by Delu Holender, a
DiamondWorks' director, has agreed to purchase CDN$100,050 of the private
placement. The balance of CDN$443,900 of the private placement is being placed
with an unrelated party. The private placement is subject to regulatory
approval.
Assuming the entire private placement closes, Ekuseni will own 29.42% of
the issued shares and, after giving effect to the exercise of all warrants
held by Ekuseni, will own 45.46% of the outstanding shares on an undiluted
basis.
DiamondWorks' shares trade on the Toronto Stock Exchange under the symbol
DMW.
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For further information: Bill Trenaman (604) 669-8871,
www.diamondworks.com |
