TSX: DIAM
SASKATOON, SK, Jan. 21, 2021
/CNW/ - 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".
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 loan and pledge of common shares as well
as 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