Diamonds North announces $10 million bought deal financing

Diamonds North Resources Ltd., a mining company focused on discovering Canada’s next diamond mine, has secured $10,000,650 in a bought-deal private placement with a syndicate of underwriters led by Canaccord Capital Corporation and including Dundee Securities Corp., GMP Securities L.P. and Haywood Securities Inc.

The funds came of 1,905,000 units at a price of $1.05 per Unit and 6,667,000 flow-through common shares at a price of $1.20 per Flow-Through.

A Unit will consist of one common share and one-half of one transferable common share purchase warrant. Each whole warrant will entitle the holder to subscribe for one additional common share at a price of $1.30 for a period of one year from the date of closing.

The company has also shown intentions to complete a non-brokered private placement to raise up to $2,000,000 through the sale of a combination of Flow-Through Shares and Units.

In consideration for their efforts, the Underwriters will be paid a commission of 6% of the total proceeds raised in the Offering upon closing payable in cash.

In addition, the Underwriters will receive underwriters’ warrants equal to 6% of the securities issued pursuant to the Offering. Each Underwriters’ Warrant will be exercisable to acquire one common share for a period of twelve months from the closing at a price of $1.30 per share.

The company has also granted the Underwriters an over allotment option to purchase additional, Flow-through Shares of $500,040 and Units of $1,500,030 for aggregate additional gross proceeds of CDN$2,000,070 exercisable 48 hours prior to closing.

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