Star Diamond Corporation (TSX: DIAM) 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.
Each Flow-Through Unit is comprised of one flow-through common share and one-half 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 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, 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. 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 will be comprised of non-flow-through units to be sold at a price of $0.15 per Unit. Each Unit will be comprised of one common share and one 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.
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We acknowledge the [financial] support of the Government of Canada.