Canadian Company Press Release
DIR 1999-05-28 (provided courtesy of Canadian Corporate News.)
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Diadem Resources Ltd - Update On California Financing
TORONTO, CANADA--DIADEM RESOURCES LTD. (DIR.ME) wishes to update
the status of the California private placements most recently
referenced in a press release dated March 9, 1999. In that
release, Diadem reported that the Montreal Exchange had
conditionally approved, subject to the filing of additional
documents, (i) a CDN $375,000 (US $250,000) private placement of
common shares at a price of CDN $0.2625 per share, as well as (ii)
the use of proceeds for a further financing of up to CDN
$2,900,000 (US $1,900,000), to be completed by Investors Advocates
of California as agent on a best efforts basis at a price per
share to be determined at a future date. The expectation of
Diadem and Investors Advocates was that the pricing and terms of
the larger placement would be considered and determined upon
completion of the interim placement.
Diadem now reports that all necessary documentation to complete
the interim placement has been received from the subscriber and is
being submitted to the Montreal Exchange today. Diadem anticipates
that payment of the subscription funds and the closing of the
interim placement will be completed next week. In anticipation of
Investors Advocates initiating the marketing phase of the second
private placement following completion of the interim placement,
Diadem has today filed a notice requesting price protection from
the Montreal Exchange on the second placement. In light of recent
trading activity, a determination of the pricing of the second
placement will be deferred pending further advice from the
Montreal Exchange.
Separate from discussions with Investors Advocates, Diadem has
also entered into discussions with another investor to complete a
small placement of CDN$200,000 and in this regard, Diadem has
today filed a prior notice with the Montreal Exchange advising of
these discussions and requesting price protection to facilitate
completion of negotiations. If, as, and when an agreement with
this investor is concluded, an announcement will be made. This
transaction would be subject to receipt of necessary approval from
the Montreal Exchange. The principal use of the funds would be
further exploration of the Leek Springs diamond discovery in
California.
Diadem Resources Ltd. is a Toronto-based mineral exploration
company with interests in gold properties in Nicaragua; an
advanced zinc project in Indonesia; zinc, copper-nickel-cobalt
properties in Quebec; and a diamond discovery in California.
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Diadem Resources Ltd.
A. C. A. Howe
Chairman
(416) 364-2893
(416) 286-0795 (FAX)
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