/NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S.
WIRE SERVICES/
Stock Symbol: DIAM:
TSX
SASKATOON, SK, April 21,
2022 /CNW/ - Star Diamond Corporation ("Star Diamond"
or the "Corporation") is pleased to announce the completion of a
second tranche under the previously announced non-brokered private
placement (the "Offering") of units of the Corporation
(collectively, the "Units").
In the second tranche, the Corporation issued an aggregate of
2,706,933 Units at a price of $0.30
per Unit for aggregate gross proceeds to the Corporation of
$812,079.90. 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 21, 2024.
Together with the proceeds realized from the sale of Units in
the first tranche completed on April 6,
2022, Star Diamond has
received aggregate gross proceeds of $5
million from the Offering. Insiders did not participate in
the Offering.
The net proceeds from the Offering 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 closing of the second tranche, the
Corporation paid $6,226.70 in
finder's fees, equal to 6% of the gross proceeds raised by a finder
under the Offering and issued a finder an aggregate of
105,527 Common Shares and 105,527 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 21,
2024.
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.
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 and the potential issuance of Common Shares upon exercise
of the Warrants and finder's warrants. 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