Star Diamond Corporation Announces Closing of $2 Million Private Placement Financing
SASKATOON, Saskatchewan – Star Diamond Corporation (TSX:DIAM) (“Star Diamond” or the “Corporation”) is pleased to announce the successful closing of a $2.0 million private placement of 13,333,334 Units at a price of $0.15 per Unit (the “Offering”).
Each Unit is comprised of one common share and one warrant. Each whole warrant will entitle the holder thereof to purchase one common share at a price of $0.25, for a period of twenty-four months from closing of the Offering. The proceeds from the sale of the Units will be used by the Corporation for general working capital purposes.
The Corporation issued 800,000 common shares and 800,000 finder’s warrants exercisable at any time up to twenty-four months from the closing of the Offering at $0.19 per share to Red Cloud Securities Inc., acting as finder in connection with the Offering, representing 6% of the number of Units issued pursuant to the Offering.
All securities issued pursuant to the Offering are subject to a four -month hold period in accordance with applicable securities laws and exchange regulations. The Offering is subject to Toronto Stock Exchange acceptance of requisite regulatory filings. Insiders did not participate in the Offering. In connection with the Offering, an individual who is both a director and executive officer of the Company entered into a share loan and pledge agreement whereby the individual agreed to lend 6.67 million common shares from his personal holdings and has been pledged a corresponding number of common shares issued under the Offering.
About Star Diamond Corporation
Star Diamond is a Canadian based corporation engaged in the acquisition, exploration and development of mineral properties. Shares of the Corporation trade on the Toronto Stock Exchange under the trading symbol “DIAM”.
For further information: [email protected] or (306) 664-2202