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Post by Franko10 ™ on Oct 6, 2005 13:47:46 GMT -5
Great Western Diamonds Corp. - Press release
STOCK SYMBOL: GWD
SASKATOON, Oct. 6 /CNW/ - Great Western Diamonds Corp. ("GWD" or the"Corporation") announced today the closing of its initial public offering (the "Offering"). The Offering consisted of 3,900,000 flow-through units (the "Flow-Through Units") of GWD at a price of $0.30 per Flow-Through Unit, with each Flow-Through Unit being comprised of one flow-through common share in the capital of GWD and one half of one non-transferable common share purchase warrant (a "Warrant") of GWD, and 5,800,000 common share units (the "Common Share Units", and collectively with the Flow-Through Units, the "Units") of GWD at a price of $0.25 per Common Share Unit, with each Common Share Unit being comprised of one non flow-through common share (a "Common Share") in the capital of GWD and one Warrant.
Each whole Warrant will entitle the holder thereof to purchase one additional Common Share at a price of $0.35 per Common Share for a period of two (2) years commencing from the date that the Common Shares are listed for trading on the TSX Venture Exchange.
In connection with the Offering, the Corporation has granted to Blackmont Capital Inc. (the "Agent") an option (the "Over-allotment Option"), to purchase on the same terms as the Offering, up to that number of Flow-Through Units and Common Share Units that is equal to respectively 15% of the number of Flow-Through Units and Common Share Units initially sold in the Offering.
The Agent has exercised the Over-allotment Option. As a result, a total of 4,485,000 Flow-Through Units and 6,670,000 Common Share Units were sold for gross proceeds of $3,013,000.
The Corporation will use $1,170,000 of the net proceeds to fund exploration activities at its Candle Lake property and to fund potential exploration opportunities in relation to other diamond properties that may be acquired by the Corporation in the future. The Corporation intends to use $705,224 of the net proceeds to repay Great Western Minerals Group Ltd. ("GWMG") for costs and expenses paid by GWMG on behalf of GWD in connection with the Candle Lake property and Offering. The Corporation will use the remaining net proceeds for general corporate purposes.
The Agent has received a cash commission equal to the aggregate of 8% of the gross proceeds of the Offering (excluding proceeds realized from the sale of certain units sold to RAB Special Solutions L.P. (the "RAB Units")) and 4% of the gross proceeds realized from the sale of the RAB Units. The Agent's commission has been paid out of the proceeds of sales of Common Share Units. The Agent has been granted a non-transferable option entitling the Agent to purchase, for a period of twenty-four (24) months commencing from the date of closing of the Offering at a price of $0.30 per Common Share, up to such number of Common Shares that is equal to the aggregate of 12.5% of the number of Units (excluding the RAB Units) sold under the Offering and 6.25% of the number of RAB Units sold under the Offering.
The TSX Venture Exchange has conditionally approved the listing of GWD's Common Shares and the Company expects that trading will commence on October 11, 2005 under the symbol "GWD".
The principal business of GWD is the acquisition, exploration and, if warranted, development of diamondiferous kimberlite deposits. The Corporation's principal assets are the claims comprising its interest in the Candle Lake property.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. A prospectus related to these securities has been filed with securities commissions or similar authorities in each of Alberta, British Columbia and Saskatchewan. This news release shall not constitute an offer to sell these securities in any state of the United States or province or territory of Canada.
For further information: Gary Billingsley, President, Chief Executive Officer, Great Western Diamonds Corp., (306) 668-0701
STOCK SYMBOL: GWD
SASKATOON, Oct. 6 /CNW/ - Great Western Diamonds Corp. ("GWD" or the"Corporation") announced today the closing of its initial public offering (the "Offering"). The Offering consisted of 3,900,000 flow-through units (the "Flow-Through Units") of GWD at a price of $0.30 per Flow-Through Unit, with each Flow-Through Unit being comprised of one flow-through common share in the capital of GWD and one half of one non-transferable common share purchase warrant (a "Warrant") of GWD, and 5,800,000 common share units (the "Common Share Units", and collectively with the Flow-Through Units, the "Units") of GWD at a price of $0.25 per Common Share Unit, with each Common Share Unit being comprised of one non flow-through common share (a "Common Share") in the capital of GWD and one Warrant.
Each whole Warrant will entitle the holder thereof to purchase one additional Common Share at a price of $0.35 per Common Share for a period of two (2) years commencing from the date that the Common Shares are listed for trading on the TSX Venture Exchange.
In connection with the Offering, the Corporation has granted to Blackmont Capital Inc. (the "Agent") an option (the "Over-allotment Option"), to purchase on the same terms as the Offering, up to that number of Flow-Through Units and Common Share Units that is equal to respectively 15% of the number of Flow-Through Units and Common Share Units initially sold in the Offering.
The Agent has exercised the Over-allotment Option. As a result, a total of 4,485,000 Flow-Through Units and 6,670,000 Common Share Units were sold for gross proceeds of $3,013,000.
The Corporation will use $1,170,000 of the net proceeds to fund exploration activities at its Candle Lake property and to fund potential exploration opportunities in relation to other diamond properties that may be acquired by the Corporation in the future. The Corporation intends to use $705,224 of the net proceeds to repay Great Western Minerals Group Ltd. ("GWMG") for costs and expenses paid by GWMG on behalf of GWD in connection with the Candle Lake property and Offering. The Corporation will use the remaining net proceeds for general corporate purposes.
The Agent has received a cash commission equal to the aggregate of 8% of the gross proceeds of the Offering (excluding proceeds realized from the sale of certain units sold to RAB Special Solutions L.P. (the "RAB Units")) and 4% of the gross proceeds realized from the sale of the RAB Units. The Agent's commission has been paid out of the proceeds of sales of Common Share Units. The Agent has been granted a non-transferable option entitling the Agent to purchase, for a period of twenty-four (24) months commencing from the date of closing of the Offering at a price of $0.30 per Common Share, up to such number of Common Shares that is equal to the aggregate of 12.5% of the number of Units (excluding the RAB Units) sold under the Offering and 6.25% of the number of RAB Units sold under the Offering.
The TSX Venture Exchange has conditionally approved the listing of GWD's Common Shares and the Company expects that trading will commence on October 11, 2005 under the symbol "GWD".
The principal business of GWD is the acquisition, exploration and, if warranted, development of diamondiferous kimberlite deposits. The Corporation's principal assets are the claims comprising its interest in the Candle Lake property.
The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. A prospectus related to these securities has been filed with securities commissions or similar authorities in each of Alberta, British Columbia and Saskatchewan. This news release shall not constitute an offer to sell these securities in any state of the United States or province or territory of Canada.
For further information: Gary Billingsley, President, Chief Executive Officer, Great Western Diamonds Corp., (306) 668-0701
