Diamond Fields International Ltd. has today entered into an agreement with GMP Securities Ltd. as lead agent and Haywood Securities Inc. whereby the agents will offer by way of private placement 14,285,715 units of Diamond Fields at 35 cents per unit to raise up to $5-million.
Each unit will consist of one common share of Diamond Fields and one-half of one share purchase warrant. Each whole share purchase warrant will entitle the holder to purchase one additional common share of Diamond Fields for a period of five years from the date of issuance of the warrant at a price of 60 cents per common share. If, over a period of 20 consecutive trading days commencing two years after the issue of the share purchase warrants, the weighted average closing price of the Diamond Fields common shares as traded on the Toronto Stock Exchange or, if the company is not listed on the Toronto Stock Exchange, then on such other stock exchange upon which the shares are listed, exceeds $1.20, then Diamond Fields may give notice in writing to the holders of the share purchase warrants that the share purchase warrants shall expire at 4 p.m. (Vancouver time) on the 20 business day following delivery of such notice unless exercised by the holder of the share purchase warrants prior to such time. Diamond Fields has granted the agents a greenshoe option to sell up to an additional 14,285,715 units under the offering.
The agents will receive a cash compensation equal to 6 per cent of the gross proceeds raised under the private placement and agents’ warrants entitling the holder to purchase that number of units that equals 6 per cent of the number of units issued under the private placement. Each agent’s warrant will be exercisable for five years from the date of issue at a price of 41 cents per agent’s warrant.
The proceeds from the private placement will be used to pay down outstanding debt, to advance the company’s exploration projects and for general working capital. The private placement is subject to the acceptance of the Toronto Stock Exchange.
