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.