Post by Franko10 ™ on Sept 16, 2004 10:30:17 GMT -5
DIAGEM announces that it has closed a $2 million private placement (the 'Diagem Placement') comprising 5,714,285 flow-through common shares at $0.35 each. The common shares issued pursuant to this placement are subject to a hold period of four months expiring April 12, 2004.
The proceeds of the Diagem Placement will be spent by Diagem on further exploration and development of Canadian properties owned and operated by the KWG Resources Inc. ('KWG') / Spider Resources Inc. ('Spider') Joint Venture in order to earn an 8% joint venture interest (the 'Interest') in the properties.
Diagem will also have the option to sell, and the Joint Venture will have the option to acquire, the Interest for share consideration to be issued by each of KWG and Spider in proportion to their Joint Venture interests. Accordingly, upon exercise of the option, KWG would issue to Diagem a total of 8,666,667 common shares and Spider would issue a total of 9,600,000 common shares.
The $2,000,000 flow through funds will be used to advance all of the Joint Venture's major projects, including:
McFauld's project, James Bay Lowlands, Ontario: geophysical ground follow-up (including downhole geophysics) and diamond drilling of up to six new targets;
McFadyen project proximate to DeBeers'Victor Pipe, James Bay Lowlands: diamond drilling of three kimberlite targets as well as drilling of the underlying feeder structure;
Wawa project, Ontario: regional prospecting, eight mini-bulk samples and two 50 tonne samples.
Once the Interest has been earned, and assuming exercise of the options, Diagem will have increased its ownership of KWG to 39.5% (from 34.1%), and acquired a 6% ownership in Spider.
No finders fees or commissions will be paid in respect of these non brokered private placements.
For and on behalf of
DIAGEM International Resource Corp.
"Dr. Mousseau Tremblay"
President
The proceeds of the Diagem Placement will be spent by Diagem on further exploration and development of Canadian properties owned and operated by the KWG Resources Inc. ('KWG') / Spider Resources Inc. ('Spider') Joint Venture in order to earn an 8% joint venture interest (the 'Interest') in the properties.
Diagem will also have the option to sell, and the Joint Venture will have the option to acquire, the Interest for share consideration to be issued by each of KWG and Spider in proportion to their Joint Venture interests. Accordingly, upon exercise of the option, KWG would issue to Diagem a total of 8,666,667 common shares and Spider would issue a total of 9,600,000 common shares.
The $2,000,000 flow through funds will be used to advance all of the Joint Venture's major projects, including:
McFauld's project, James Bay Lowlands, Ontario: geophysical ground follow-up (including downhole geophysics) and diamond drilling of up to six new targets;
McFadyen project proximate to DeBeers'Victor Pipe, James Bay Lowlands: diamond drilling of three kimberlite targets as well as drilling of the underlying feeder structure;
Wawa project, Ontario: regional prospecting, eight mini-bulk samples and two 50 tonne samples.
Once the Interest has been earned, and assuming exercise of the options, Diagem will have increased its ownership of KWG to 39.5% (from 34.1%), and acquired a 6% ownership in Spider.
No finders fees or commissions will be paid in respect of these non brokered private placements.
For and on behalf of
DIAGEM International Resource Corp.
"Dr. Mousseau Tremblay"
President