TSX: DIAM
SASKATOON, Dec. 5, 2019 /CNW/ - Star Diamond
Corporation (TSX:DIAM) ("the Corporation") is pleased to
announce the successful closing of a $5.1 million private placement of
18,201,274 Flow-Through Common Shares at a price of
$0.28 per Flow-Through Common
Share (the "Offering").
The proceeds from the sale of the Flow-Through Common Shares
will be used by the Corporation to incur Canadian exploration
expenses ("Qualifying Expenditures") prior to December 31, 2020. The Corporation will
renounce the Qualifying Expenditures to subscribers of Flow-Through
Common Shares for the fiscal year ended December 31, 2019.
The Corporation issued Red Cloud Securities, acting as
finder in connection with the Offering ("Finder"), Common Shares
from treasury equal to 5%, and also issued the Finder warrants
equal to 5%, of the number of Flow-Through Common Shares
attributable to the Finder pursuant to the Offering (the "Finder's
Warrants"). In relation to the Offering, the
Corporation issued 910,064 Common Shares and
910,064 in Finder's Warrants exercisable at any time up to
twenty-four months following the closing of the Offering at
$0.35 per share. 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 TSX acceptance of requisite
regulatory filings. Insiders did not participate in the
Offering.
Star Diamond Corporation is a Canadian based corporation
engaged in the acquisition, exploration and development of mineral
properties. Shares of the Corporation trade on the TSX Exchange
under the trading symbol "DIAM".
Caution Regarding Forward-Looking Statements
This press release contains "forward-looking statements" and/or
"forward-looking information", within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and
applicable Canadian securities legislation. All statements, other
than statements of historical fact, are forward-looking statements.
Generally, forward-looking statements can be identified by the use
of forward-looking terminology such as "plans", "expect", "is
expected", "in order to", "is focused on" (a future event),
"estimates", "intends", "anticipates", "believes" or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "would", or the negative connotation
thereof. Forward-looking statements included or implied in this
press release include the tax treatment of Flow-Through Shares and
the use of the proceeds of the Offering. These forward-looking
statements are based on the Corporation's current beliefs as well
as assumptions made by and information currently available to the
Corporation. Although management considers these assumptions to be
reasonable based on information currently available to it, they may
prove to be incorrect. By their very nature, forward-looking
statements involve inherent risks and uncertainties, both general
and specific, and risks exist that predictions, forecasts,
projections and other forward-looking statements will not be
achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual
results to differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates and intentions expressed in
such forward-looking statements.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy the securities in any jurisdiction.
The Flow-Through Common Shares will not be and have not been
registered under the United States Securities Act of 1933 and may
not be offered or sold in the United
States absent registration or an applicable exemption from
the registration requirements.
SOURCE Star Diamond Corporation