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Diamonds North Closes $12.5 Million Bought Deal Financing
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Not for dissemination in the United States or via U.S. newswire
services.
VANCOUVER, July 7th, 2008 - Diamonds North Resources Ltd. (TSX-V: DDN)
(the Company) is pleased to announce it has closed the bought deal
financing announced June 19th, 2008 and subsequently increased June
26th, 2008. The financing, led by Canaccord Capital Corporation and
including Dundee Securities Corporation, GMP Securities L.P. and
Haywood Securities Inc. (collectively, the "Underwriters") consisted of
3,833,600 units (the "Units") at a price of $1.05 per Unit and
7,083,700 flow-through common shares ("Flow-Through Shares") at a price
of $1.20 per Flow-Through Share for aggregate proceeds of $12,525,720
(the "Offering"). A Unit consists of one common share and one-half of
one transferable common share purchase warrant (a "Warrant"). Each
whole warrant entitles the holder to purchase one additional common
share at a price of $1.30 for a period of one year from the date of
closing.
In consideration for their efforts, the Underwriters were paid a cash
commission of 6% of the total proceeds raised in the Offering. In
addition, the Underwriters received non-transferable underwriters'
warrants ("Underwriters' Warrants") equal to 6% of the securities
issued pursuant to the Offering. Each Underwriters' Warrant entitles
the holder to purchase one common share for a period of twelve months
from the closing at a price of $1.30 per share.
In addition to the bought deal financing, the Company has also closed
the first tranche of the non-brokered private placement announced on
June 19th, 2008 and subsequently increased June 20th, 2008. A total of
$2,946,799 was raised pursuant to the closing of the first tranche and
involved the issuance of 1,391,666 Flow-Through Shares and 1,216,000
Units. Finders fees were paid consisting of $22,140 cash and the
issuance of share purchase warrants entitling finders to purchase up to
24,000 common shares for a period of one year from the closing at a
price of $1.30 per share.
All securities issued pursuant to the bought deal financing and the
first tranche of the non-brokered private placement are subject to a
statutory hold period expiring on November 8, 2008.
The funds raised from the issuance of the Flow-Through Shares shall be
used for general exploration expenditures which will constitute
Canadian Exploration Expenditures ("CEE"). The funds raised from the
issuance of the Units will be used for the advancement of the Company's
mineral assets and for general working capital purposes.
Diamonds North has discovered 25 kimberlites to date on the Amaruk
property. Of the 22 analyzed kimberlites, more than 90% of the known
kimberlites are diamondiferous and 50% exhibit
Diamond counts that
require follow-up exploration. At least 500 geophysical targets remain
to be tested on the property.
Diamonds North Resources is focused on discovering Canada's next
Diamond mine. The Company is rapidly evolving and committed to building
long-term value through ongoing
Diamond discoveries.
On behalf of Diamonds North Resources Ltd.
Mark Kolebaba President & CEO
For additional information please contact: Nancy Curry
VP Corporate Communications
Diamonds North Resources Ltd.
Telephone: (604) 689-2010
Facsimile: (604) 484-7143
Email: info@diamondsnorth.com
Website: www.diamondsnorth.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Statements
in this press release, other than purely historical information,
including statements relating to the Company's future plans and
objectives or expected results, may include forward-looking statements.
Forward-looking statements are based on numerous assumptions and are
subject to all of the risks and uncertainties inherent in resource
exploration and development. As a result, actual results may vary
materially from those described in the forward-looking statements.
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Copyright (c) 2008 DIAMONDS NORTH RESOURCES LTD. (DDN) All rights
reserved. For more information visit our website at
http://www.diamondsnorth.com/ or send mailto:info@diamondsnorth.com
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