Dianor completes private placement

Dianor Resources Inc. has held a first closing of its previously-announced private placement with Northern Securities Inc. by placing 6,820,571 units at a price of $0.35 per unit and 5,512,000 “flow-through” common shares at a price of $0.40 per share, for aggregate gross proceeds to Dianor of $4.59 million. Additional closings of the private placement may be held in April 2008.

Each of the 6,820,571 units consists of one common share and one common share purchase warrant. Each warrant entitles the holder to purchase one additional common share of Dianor at a price of $0.45 for 24 months.

Dianor will use the proceeds from the placement of the flow-through shares to incur Canadian Exploration Expenses on its Leadbetter Diamond Project, located north east of Wawa, Ontario, as well as on certain of its Quebec-based exploration properties. Dianor will use the net proceeds from the placement of the units for additional work on the Leadbetter Diamond Project, for work on other existing properties and for working capital.

The private placement was effected through a syndicate group led by Northern Securities Inc. and including Desjardins Securities Inc. In connection with the placement, Dianor paid a cash commission equal to 7% of the gross proceeds from the private placement and issued compensation options to the agents, entitling them to purchase at a price of $0.35 per share for twelve months, a maximum of 739,954 additional common shares, representing 6% of the number of shares sold in the private placement. Each compensation option is exercisable for one common share and one common share purchase warrant. Each warrant comprised in the compensation option entitles the holder thereof to purchase one additional common share of Dianor at a price of $0.45 for 24 months.

All of the foregoing securities, including those issued to the agents, are subject to a hold period expiring on July 28, 2008.

Story link: Dianor completes private placement