DiamondWorks (DMW)

[TadeuszA]

News - PP up to 10.8 Millon @ $1.35 per Unit.

VANCOUVER, Dec. 12 /CNW/ - DiamondWorks Ltd. (the "Company") is pleased to announce that it has arranged a private placement of up to 8.0 million Units at a price of $1.35 per Unit for gross proceeds of up to $10.8 million. Each Unit will consist of one common share of the Company and one half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one common share of the Company at a price of $1.80 per share for 18 months.
The issuer has retained ODL Securities Limited of London, U.K. to act as agent on a best efforts basis in connection with the private placement. The issuer has agreed to pay a cash commission of 7% of the proceeds of the private placement together with a broker's warrant entitling ODL Securities to acquire that number of common shares of the issuer which is equal to 10% of the Units placed by ODL Securities, at a price of $1.35 per common share for a term of two years.

The proceeds of the private placement will be used for general corporate purposes and working capital. The private placement is subject to the approval of the Toronto Stock Exchange.

/For further information: please contact: Rob Rainey in Johannesburg at telephone [phone], Fax [phone] or e-mail: info(at)diamondworks.co.za/

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