TSX: DIAM
SASKATOON, SK, Dec. 30, 2020 /CNW/ - Star Diamond
Corporation (TSX: DIAM) ("Star Diamond" or the "Corporation")
is pleased to announce the successful closing of a $1.0 million private placement of
5,555,556 Flow-Through Units at a price of $0.18 per Flow-Through Unit (the
"Flow-Through Offering").
![Star Diamond Corporation logo (CNW Group/Star Diamond Corporation) Star Diamond Corporation logo (CNW Group/Star Diamond Corporation)](https://mma.prnewswire.com/media/1393368/Star_Diamond_Corporation_Star_Diamond_Corporation_announces_Clos.jpg)
Each Flow-Through Unit is comprised of one flow-through common
share and one-half (1/2) of one flow-through warrant. Each
whole warrant will entitle the holder thereof to purchase one
non-flow-through common share at a price of $0.25, for a period of twenty-four months from
closing. The proceeds from the sale of the Flow-Through Units
will be used by the Corporation to incur Canadian exploration
expenses ("Qualifying Expenditures") prior to December 31, 2021 (or December 31, 2022 if the proposals by the
Department of Finance resulting from the COVID-19 pandemic,
announced on July 10, 2020, become
law). The Corporation will renounce the Qualifying Expenditures to
subscribers of Flow-Through Units for the fiscal year ended
December 31, 2020.
The Corporation issued Red Cloud Securities Inc., acting as
finder in connection with the Flow-Through Offering ("Finder"),
common shares from treasury equal to 5%, and also issued the Finder
warrants equal to 5%, of the number of Flow-Through Units
attributable to the Finder pursuant to the Flow-Through Offering
(the "Finder's Warrants"). In relation to the Offering, the
Corporation issued 277,778 common shares and
277,778 in Finder's Warrants exercisable at any time up to
twenty-four months following the closing of the Flow-Through
Offering at $0.19 per share. All
securities issued pursuant to the Flow-Through Offering are subject
to a four month hold period in accordance with applicable
securities laws and exchange regulations. The Flow-Through Offering
is subject to TSX acceptance of requisite regulatory filings.
Insiders did not participate in the Flow-Through Offering.
Star Diamond is pleased to also
announce that it proposes to undertake an additional non-brokered
private placement for gross proceeds of up to $2.0 million (the "Offering"). The Offering will
be comprised of non-flow-through units (the "Units") to be sold at
a price of $0.15 per Unit. Each
Unit will be comprised of one common share and one warrant ("Unit
Warrant"). The Unit Warrants entitle the holder thereof to
purchase one common share at a price of $0.25, for a period of twenty-four months from
closing. The exact number of Units sold will be determined at
closing. The Corporation may pay finders' fees, comprised of common
shares and warrants, in connection with the Offering. All
securities issued pursuant to the Offering will be 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.
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".
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 common
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 does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in
the United States of America. The
securities have not been and will not be registered under the
United States Securities Act of 1933 (the "1933 Act") or any state
securities laws and may not be offered or sold within the United States or to U.S. Persons (as
defined in the 1933 Act) unless registered under the 1933 Act and
applicable state securities laws, or an exemption from such
registration is available.
SOURCE Star Diamond Corporation