Big Red Diamond Corporation

Big Red Diamond Corporation

December 11, 2006 15:57 ET

Big Red Diamond Corporation Announces That it is Seeking to Raise Two Private Placements for a Total of $870,000

MONTREAL, QUEBEC--(CCNMatthews - Dec. 11, 2006) - Big Red Diamond (TSX VENTURE:DIA) announces that it is seeking to complete two (2) private placement in the total amount of $870,000. The first placement is to be used for working capital purposes in an amount of $210,000. It consists in the issuance of 1,750,000 treasury units. Each treasury units consists of one (1) treasury common share at $0.12 per share and one (1) treasury common shares purchase warrant to purchase one additional common treasury shares at a price of $0.15 per share until December 31, 2007. This Placement is to be completed with investors that deal with the Corporation at arm's length.

The second private placement consists in the issuance of 4,950,000 flow-through shares at a price of $0.12 per flow-through share and 550,000 treasury shares at $0.12 each. The subscriber must purchase 1 (one) treasury shares for each nine (9) flow-through shares purchased. This placement is to be completed with investors that deal with the Corporation at arm's length.

The treasury placement will be used for working capital purposes as well as $66,000 out of $660,000 flow-through financing which will be for working capital purposes. The flow-through portion will be invested in the following Big Red Diamond exploration projects:

$100,000 Maro (Uranium) complete the radiometric, geochemistry and
channel saw sampling surveys, laboratory assays;
$100,000 Andy Lake Drilling, geology and lab assays;
$100,000 Frederike Airborne MAG and EM surveys, geology and till
$100,000 Attawapiskat Joint-Venture (diamonds) till sampling and lab
$194,000 Strategis Property Radiometric survey, stripping, channel
saw sampling, geology and lab assays.

In the event that some of the results from already completed exploration surveys on the above mentioned projects are inconclusive the Corporation reserves the right to redirect the flow-through funds to more promising projects.

The Corporation will issue a maximum of 750,000 broker warrants on the Flow-through placement and 250,000 broker warrants on the Treasury Units. These warrants will give the holder the right to acquire shares of Big Red at $0.15 per share until December 27, 2007.

Benoit Violette, director of Big Red Diamond, a Qualified Persons under National Instrument 43-101, has reviewed this press release after it was prepared by AntOro's management.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Big Red Diamond Corporation
    Francois C. Desrosiers
    514-982-6044, ext. 223