Shear Announces the Closing of Its Previously Announced Equity Offering
21.03.2012 | Marketwire
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE U.S.TORONTO, ONTARIO -- (Marketwire - March 21, 2012) - Shear Diamonds Ltd. (TSX VENTURE:SRM) ("Shear") announces the closing of its previously announced private placement equity financing (the "Offering"). Shear has issued 2,787,446 conventional common share units ("Conventional Units") at $0.36 per unit and 4,640,600 flow-through common share units ("Flow-Through Units") at $0.40 per unit for gross proceeds of approximately $2.85 million. The securities issued under the Offering are subject to a hold period that expires July 22, 2012.
Each Conventional Unit consists of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (a "Conventional Unit Warrant"). Each whole Conventional Unit Warrant entitles the holder to acquire one Common Share at a price of $0.55 until September 21, 2013.
Each Flow-Through Unit consists of one flow-through Common Share and one-half of one Common Share purchase warrant (a "FT Unit Warrant"). Each whole FT Unit Warrant entitles the holder to acquire one Common Share at a price of $0.60 until September 21, 2013.
In connection with the Offering, M Partners Inc. received a cash fee of $171,583 and 445,683 broker warrants ("Broker Warrants"). Each Broker Warrant is exercisable to purchase one Common Shares at a price of $0.36 until September 21, 2013.
Proceeds from the issue of the Conventional Units will be used primarily for equipment and other expenses related to Shear's efforts to bring its Jericho Diamond Mine back into production. Proceeds from the issue of the Flow-Through Units will be used for further exploration at Jericho, in addition to Shear's other exploration properties.
About Shear Diamonds Ltd.
Shear is a Canadian-based company focused on diamond exploration and development in Canada's North, where it explores established diamond districts and has discovered new ones. Shear currently has a portfolio of eight diamond projects, including three advanced projects with development potential. Shear holds a 100% interest in its recently acquired Jericho Diamond Mine and surrounding exploration assets, located in the Kitikmeot region of Nunavut.
On behalf of the Board of SHEAR DIAMONDS LTD.
Julie Lassonde
President & CEO
This news release may contain forward looking statements, being statements which are not historical facts, including, without limitation, statements regarding potential mineralization, exploration results, resource or reserve estimates, anticipated production or results, sales, revenues, costs, "best-efforts" financings or discussions of future plans and objectives. There can be no assurance that such statements will prove accurate. Such statements are necessarily based upon a number of estimates and assumptions that are subject to numerous risks and uncertainties that could cause actual results and future events to differ materially from those anticipated or projected. Important factors that could cause actual results to differ materially from Shear's expectations are in its documents filed from time to time with the TSX or the TSX Venture Exchange and provincial securities regulators, most of which are available at www.sedar.com. Shear disclaims any intention or obligation to revise or update such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information
Shear Diamonds Ltd.
416-479-8728 or 1-866-298-9695
www.sheardiamonds.com