Premier Diamond Corp.
NEX BOARD : PDC.H

January 10, 2007 18:35 ET

Premier Diamond Corp. Completes $210,000 Private Placement

CALGARY, ALBERTA--(CCNMatthews - Jan. 10, 2007) - Premier Diamond Corp. ("Premier") (NEX BOARD:PDC.H) is pleased to announce that it has completed the initial tranche of the private placement announced in its press release of January 8, 2007 for total proceeds of $210,000 (the "Initial Closing"). Premier issued 840,000 units at an issue price of $0.25 per unit. Each unit consists of one common share and one-half of one common share purchase warrant ("Warrant"). Each Warrant is exercisable into one Common Share at a price of $0.50 per Common Share. The Warrants forming part of the Units issued at the Initial Closing have a one year term unless Premier is listed on the TSX Venture Exchange on or before January 10, 2008 (the "First Anniversary"). If Premier is listed on the TSX Venture on or before the First Anniversary these Warrants will expire on January 10, 2009 (the "Second Anniversary"). If the trading price of the common shares is greater than $0.80 for ten consecutive days of trading at any time during the one or two year term of these Warrants, as the case may be, Premier will have the right to shorten the term of these Warrants to thirty days from the day on which Premier provides notice to the holders of the shortened exercise term. Securities issued pursuant to this tranche of the private placement are subject to a statutory resale restriction period of four months, which expires on May 11, 2007. After giving effect to the this closing of the private placement, the Corporation has 3,015,154 common shares issued and outstanding.

The proceeds of the Private Placement will be used by Premier for general working capital purposes, including to fund expenditures incurred in connection with the proposed acquisition of Mexican Silver Mines (Guernsey) Limited ("Mexican Silver") and to fund the exploration programme to be carried out on Mexican Silver's property following the completion of such acquisition.

ON BEHALF OF THE BOARD OF PREMIER DIAMOND CORP.

Feisal Somji, B.Sc., MBA, President

The TSX Venture Exchange has in no way passed upon the merits of the proposed transaction and has neither approved nor disapproved of the contents of this press release. The NEX does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Premier Diamond Corp.
    Feisal Somji
    President
    (403) 236-5089
    (403) 398-0693 (FAX)