Star DIAM Announces Two Private Placements - One Closes Star Diamond closes one placement, arranges another
2020-12-30 18:49 ET - News Release
An anonymous director reports
STAR DIAMOND CORPORATION ANNOUNCES CLOSING OF $1 MILLION FLOW-THOUGH PRIVATE PLACEMENT FINANCING AND ADDITIONAL NON FLOW-THROUGH PRIVATE PLACEMENT OF UP TO $2 MILLION
Star Diamond Corp. has closed a $1.0-million private placement of 5,555,556 flow-through units at a price of 18 cents per flow-through unit.
Each flow-through unit is composed 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 25 cents for a period of 24 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 Dec. 31, 2021 (or Dec. 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 Dec. 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 per cent, and also issued finder warrants equal to 5 per cent, 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 finder warrants exercisable at any time up to 24 months following the closing of the flow-through offering at 19 cents 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 Toronto Stock Exchange 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 composed of non-flow-through units to be sold at a price of 15 cents per unit. Each unit will be composed of one common share and one warrant. The unit warrants entitle the holder thereof to purchase one common share at a price of 25 cents for a period of 24 months from closing. The exact number of units sold will be determined at closing. The corporation may pay finders' fees, composed 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.