Diamondex Arranges $15 Million Bought Deal Financing
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Vancouver, B.C. -- DIAMONDEX RESOURCES LTD. (DSP-TSXV) ("Diamondex") is
pleased to announce that it has entered into an agreement with a
syndicate of underwriters led by Genuity Capital Markets and including
Westwind Partners Inc., under which the underwriters have agreed to
purchase on a bought deal private placement basis and sell to qualified
investors 21,500,000 units of Diamondex at a price of $0.70 per unit
for total gross proceeds to Diamondex of $15,050,000. Each unit will
consist of one common share and one half of a warrant. Each whole
warrant will be exercisable for an additional common share for 24
months from closing at a price of $0.85 per share. The underwriters
will have the option to purchase, on a best efforts basis, up to an
additional 2,150,000 units at any time prior to closing for additional
gross proceeds to Diamondex of $1,505,000. Closing of the offering is
scheduled to occur on or about May 3, 2006. The securities issued in
connection with this financing will be subject to a "hold" period of
four months and one day from closing.
The offering is subject to a number of conditions, including, without
limitation, receipt of all regulatory approvals and the purchase by
Barrick Gold Corporation of at least 3,053,000 units (3,358,300 units
should the underwriters' option be exercised).
In consideration for their services, the underwriters will receive a
cash commission equal to 6% of the proceeds raised under the offering
together with broker warrants entitling the underwriters to purchase
common shares of Diamondex equal to 6% of the units sold under the
offering for a period of 12 months from closing at a price of $0.85 per
share, in both instances, net of the units purchased by Barrick.
The net proceeds from the offering will be used for further exploration
of Diamondex's Lena West, Brodeur and Pegasus properties and for
general corporate purposes.
Diamondex holds a very large and prospective portfolio of diamond
exploration properties in the lower Mackenzie River area and the
southern Slave province of the Northwest Territories, the Melville and
Brodeur Peninsula areas, as well as the Coronation Gulf district of
Nunavut, northern Quebec and central Alberta. Diamondex holds up to a
100% interest in 16 diamond properties totaling 11.3 million acres.
