=======================================================================
Re: News Release - Thursday, June 19, 2008
Diamonds North Announces $10 Million Bought Deal Financing
=======================================================================
Not for dissemination in the United States or via U.S. newswire
services.
News Release: 08-24
VANCOUVER, June 19th, 2008 - Diamonds North Resources Ltd. (TSX-V: DDN)
(the Company) is pleased to announce 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. (collectively, the "Underwriters") of 1,905,000 units
(the "Units") at a price of $1.05 per Unit and 6,667,000 flow-through
common shares ("Flow-Through Shares") at a price of $1.20 per
Flow-Through Share for aggregate proceeds of $10,000,650 (the
"Offering"). A Unit will consist of one common share and one-half of
one transferable common share purchase warrant (a "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 also intends 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 ("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.
The funds raised from the issuance of the Flow-Through Shares shall be
used for general exploration expenditures which will constitute
Canadian Exploration Expenditures ("CEE"). The funds raised from the
issuance of the Units will be used for the advancement of the Company's
mineral assets and for general working capital purposes.
Diamonds North has discovered 25 kimberlites to date on the Amaruk
property. Of the 22 analyzed kimberlites, more than 90% of the known
kimberlites are diamondiferous and 50% exhibit
Diamond counts that
require follow-up exploration. At least 500 geophysical targets remain
to be tested on the property.
Diamonds North Resources is focused on discovering Canada's next
Diamond mine. The Company is rapidly evolving and committed to building
long-term value through ongoing
Diamond discoveries.
On behalf of Diamonds North Resources Ltd.
Mark Kolebaba President & CEO
For additional information please contact: Nancy Curry
VP Corporate Communications
Diamonds North Resources Ltd.
Telephone: (604) 689-2010
Facsimile: (604) 484-7143
Email: info@diamondsnorth.com
Website: www.diamondsnorth.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. Statements
in this press release, other than purely historical information,
including statements relating to the Company's future plans and
objectives or expected results, may include forward-looking statements.
Forward-looking statements are based on numerous assumptions and are
subject to all of the risks and uncertainties inherent in resource
exploration and development. As a result, actual results may vary
materially from those described in the forward-looking statements.
=======================================================================
Copyright (c) 2008 DIAMONDS NORTH RESOURCES LTD. (DDN) All rights
reserved. For more information visit our website at
http://www.diamondsnorth.com/ or send mailto:info@diamondsnorth.com
=======================================================================
.