Post by Franko10 ™ on Sept 20, 2004 15:46:34 GMT -5
NEWS RELEASE
DIAMOND COMPANY FINANCING ARRANGED
Gary Billingsley, President, is pleased to announce that an engagement letter has been signed with First Associates Investments Inc. to act as exclusive agents in the Initial Public Offering of the Company's subsidiary, Great Western Diamonds Corp. The IPO will raise a maximum of $2 million by way of prospectus, for listing on the TSX Venture Exchange, and will be structured as follows:
Issuer: Great Western Diamonds Corp.
Gross Proceeds: Up to CDN$2,012,000 of which up to CDN$1,512,000 will be flow-through funds eligible for federal tax credits, and provincial tax credits where applicable.
Offering: Up to 5,400,000 flow-through common shares and up to 2,000,000 units ("Units"). Each Unit shall consist of one non-flow-through common share and one common share purchase warrant. Each warrant will entitle the holder to purchase an additional non-flow-through common share at a price of CDN $0.30 per common share for a period of 18 months.
Offering Price: CDN$0.28 per flow-through share.
CDN$0.25 per Unit.
Offering Jurisdictions: British Columbia, Alberta, Saskatchewan and Ontario and any other jurisdictions on which the parties agree.
Current Great Western Minerals Group Ltd. shareholders will receive dividend shares in Great Western Diamonds on the basis of one dividend share for every four common shares held in Great Western Minerals. A date of record for the dividend shares will be announced in due course.
The funds will be used to explore and develop the Candle Lake diamond property in Saskatchewan; carry out general diamond exploration on other properties of merit; and for working capital.
Management is extremely excited to be working with First Associates in launching this new diamond company using Candle Lake as the anchor project. Work program details will be announced in forthcoming news releases.
Gary L. Billingsley, C.A., P.Eng., P.Geo.
President
For further information contact the Company at (306) 668-0701. All email inquiries should be made to info@gwmg.ca (website: http://www.gwmg.ca) Direct mail: Great Western Minerals Group Ltd., 119A Cardinal Crescent, Saskatoon, SK S7L 6H5
(The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the foregoing contents)
© 2004 Great Western Minerals Group Ltd.