Diamond Fields has completed non-brokered private placements totalling $8.1-million, pursuant to which the company issued 6.6 million units at a price of 60 cents per unit for total proceeds of $3.96-million, and 6.9 million subscription receipts convertible into units on a 1-for-1 basis, at a price of 60 cents per subscription receipt for total proceeds of $4.14-million. Each unit consists of one common share in the capital of DFI and one non-transferable share purchase warrant, each warrant entitling the holder to purchase one additional share, exercisable until Nov. 28, 2006, at a price of $1.00. Should the weighted average closing price of DFI’s shares equal or exceed $1.30 per share for a period of 20 consecutive days at any time between six months and 35 months after the closing and DFI gives the warrant holders notice thereof, the warrants must be exercised within 30 days or they will terminate.
Proceeds from these private placements will be used to finance continued development of DFI’s Namibian marine diamond concession, as well as exploration activities in Greenland, Sierra Leone and Madagascar, and for repayment of debt and general working capital purposes.
The company paid finders’ fees equal to a cash commission of 6 per cent of the gross proceeds of the subscriptions found by the finders and compensation receipts to purchase up to a total of 485,430 shares at an exercise price of 74 cents per share until Nov. 28, 2005. Should the weighted average closing price of DFI’s shares equal or exceed $1.30 per share for a period of 20 consecutive days at any time between six months and 23 months after the closing and DFI gives the compensation receipts holders notice thereof, the compensation receipts must be exercised within 30 days or they will terminate.
Completion of the SR private placement and the issue of the compensation receipts is subject to receipt of shareholder approval, which will be sought at the company’s next annual general meeting on Dec. 17, 2003. All proceeds received from the SR private placement will be held in trust until such approval is received.
WARNING: The company relies upon litigation protection for “forward-looking” statements.
