/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
Stock
Symbol: DIAM: TSX
SASKATOON, SK, April 6,
2022 /CNW/ - Star Diamond Corporation ("Star
Diamond" or the "Corporation") is pleased to announce the
completion of the previously announced non-brokered private
placement (the "Offering") of units of the Corporation
(collectively, the "Units"). Under the Offering, the
Corporation issued an aggregate of 13,959,734 Units at a price of
$0.30 per Unit for aggregate gross
proceeds to the Corporation of $4,187,920.20. Each Unit is comprised of one
common share in the capital of the Corporation (each a "Common
Share") and one Common Share purchase warrant (each, a "Warrant").
Each warrant will entitle the holder thereof to purchase one
additional Common Share at a price of $0.40 per Common Share at any time prior to
April 6, 2024.
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The net proceeds from the sale of the Units are anticipated to
be used by the Corporation to: (i) settle its current working
capital deficiency; (ii) for technical analyses and evaluations of
the Corporation's mineral property interests, including the
Corporation's interest in the Star – Orion South Diamond Project;
(iii) and for general corporate purposes. Although the
Corporation intends to use the net proceeds of the Offering as
described, the actual allocation of the net proceeds of the
Offering may vary from the anticipated uses, depending on future
operations or unforeseen events or opportunities.
In connection with the Offering, the Corporation paid
$20,736 in finder's fees, equal to 6%
of the gross proceeds raised by a finder under the Offering and
issued finders an aggregate of 362,284 Common Shares and
362,284 finder's warrants which entitle the holder thereof to
purchase one additional Common Share at a price of $0.40 per Common Share at any time prior to
April 6, 2024. Insiders did not
participate in the Offering.
All securities issued pursuant to the Offering are subject to a
statutory hold period of four months plus one day from the closing
date of the Offering.
As originally announced on March 16,
2022, the Corporation may complete a second tranche of the
issue and sale of Units under the Offering on or before
April 29, 2022.
About Star
Diamond
Star Diamond Corporation is a Canadian based corporation engaged
in the acquisition, exploration and development of mineral
properties. The Common Shares trade on the Toronto Stock Exchange
under the trading symbol "DIAM". Star
Diamond holds, through a joint venture arrangement with Rio
Tinto Exploration Canada Inc. (a wholly-owned subsidiary of Rio
Tinto), a 25% interest in certain Fort à la Corne kimberlites
(including the Star – Orion South Diamond Project). These
properties are located in central Saskatchewan, Canada and are in close
proximity to established infrastructure, including paved highways
and the electrical power grid, which provide significant advantages
for future mine development.
Caution Regarding Forward-Looking
Statements
This news release contains forward-looking statements as defined
by certain securities laws, including the "safe harbour" provisions
of Canadian securities legislation and the United States Private
Securities Litigation Reform Act of 1995. Forward-looking
information is often, but not always, identified by the use of
words such as "anticipate", "believe", "expect", "plan", "intend",
"forecast", "target", "project", "guidance", "may", "will",
"should", "could", "estimate", "predict" or similar words
suggesting future outcomes or language suggesting an outlook.
Forward-looking statements in this press release include, but are
not limited to statements regarding the use of the proceeds of the
Offering; the potential issuance of Common Shares upon exercise of
the Warrants and finder's warrants; expectations pertaining to the
completion of the issue and sale of a second tranche of Units under
Offering and the timing thereof. These forward-looking statements
are based on Star Diamond's current
beliefs as well as assumptions made by and information currently
available to it and involve inherent risks and uncertainties, both
general and specific.
Risks exist that forward-looking statements will not be achieved
due to a number of factors including, but not limited to,
developments in world diamond markets, changes in diamond prices,
risks relating to fluctuations in the Canadian dollar and other
currencies relative to the US dollar, changes in exploration,
development or mining plans due to exploration results and changing
budget priorities of Star Diamond or
its joint venture partners, the effects of competition in the
markets in which Star Diamond
operates, the impact of changes in the laws and regulations
regulating mining exploration, development, closure, judicial or
regulatory judgments and legal proceedings, operational and
infrastructure risks and the additional risks described in
Star Diamond's most recently filed
Annual Information Form, annual and interim MD&A. Star Diamond's anticipation of and success in
managing the foregoing risks could cause actual results to differ
materially from what is anticipated in such forward-looking
statements.
Although the management of Star
Diamond consider the assumptions contained in the
forward-looking statements to be reasonable based on information
currently available to them, those assumptions may prove to be
incorrect. When making decisions with respect to Star Diamond, investors and others should not
place undue reliance on these statements and should carefully
consider the foregoing factors and other uncertainties and
potential events. Star Diamond does not undertake any
obligation to release publicly revisions to any forward-looking
statement to reflect events or circumstances after the date of this
news release, or to reflect the occurrence of unanticipated events,
except as may be required under applicable securities laws.
Investors should not assume that any lack of update to a previously
issued forward-looking statement constitutes a reaffirmation of
that statement. Continued reliance on forward-looking statements is
at investors' own risk.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy securities in the United States of America or in any
jurisdiction in which the offer, sale or solicitation would be
unlawful. The securities have not been and will not be
registered under the United States Securities Act of 1933 (the
"1933 Act"), as amended, or any state securities laws and such
securities may not be offered or sold in 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 requirements is available.
www.stardiamondcorp.com
SOURCE Star Diamond Corporation