Big Red Diamond Corporation

Big Red Diamond Corporation

December 22, 2006 15:29 ET

Big Red Diamond Corporation Files with the TSX-V Final Documentation for Two Private Placements for a Total of $870,000

MONTREAL, QUEBEC--(CCNMatthews - Dec. 22, 2006) - Big Red Diamond Corp.(TSX VENTURE:DIA) has completed two private placements in the total amount of $870,000. The final documents have been filed with the TSX-V. The first placement is to be used for working capital purposes in an amount of $210,000. It consists in the issuance of 1.75 million treasury units. Each treasury unit consists of one treasury common share at 12 cents per share and one treasury common share purchase warrant to purchase one additional common treasury share at a price of 15 cents per share until Dec. 31, 2007. This placement is to be completed with investors that deal with the corporation at arm's length.

The second private placement consists of the issuance of 4.95 million flow-through shares at a price of 12 cents per flow-through share and 550,000 treasury shares at 12 cents each. The subscriber must purchase one treasury share for each nine flow-through shares purchased. Francois Desrosiers, the Corporation's President has acquired 378,000 flow-through shares and 42,000 treasury shares. All the other investors deal with the corporation at arm's length.

The treasury placement as well as $66,000 out of $660,000 in flow-through financing will be used 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 magnetic and electromagnetic surveys, geology and till sampling;

- $100,000, Attawapiskat joint venture (diamonds), till sampling and lab assays; and

- $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 finances to more promising projects.

The corporation will issue a maximum of 1,046,200 broker warrants in the flow-through placement and 250,000 broker warrants on the treasury units (270,480 to Canaccord Capital Corp., 18,480 to Union Securities, 200,000 to Frank Yakabuski and 557,240 to Grant Cool). These warrants will give the holder the right to acquire shares of Big Red at 15 cents per share until Dec. 27, 2007.

Benoit Violette, director of Big Red Diamond, a qualified person 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 adequacy or accuracy of this release.

Contact Information

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