Dia Bras Exploration Inc.

Dia Bras Exploration Inc.

December 02, 2010 10:30 ET

Dia Bras Announces Consolidation of Outstanding Common Shares and Exercise of Warrants

MONTREAL, QUEBEC--(Marketwire - Dec. 2, 2010) - Dia Bras Exploration Inc. ("Dia Bras") (the "Company") (TSX VENTURE:DIB) announces that it has received conditional approval of the TSX Venture Exchange for the proposed consolidation of all of the Company's issued and outstanding common shares (each, a "Common Share") on the basis of one (1) post-consolidation Common Share for every seven (7) pre-consolidation Common Shares (the "Consolidation"). It is expected that the Consolidation will become effective on or about December 7, 2010. The Consolidation was approved by the shareholders of the Company at a Special Meeting of Shareholders held on August 21, 2010.

Following completion of the Consolidation, the number of Common Shares issued and outstanding will be reduced from 517,563,844 as of December 1, 2010, to 73,937,692.

Dia Bras believes that, following the Consolidation, the outstanding share capital will be more reflective of similarly sized peer companies and will provide enhanced analytical framework with which to compare the financial performance of Dia Bras. 

In connection with the Consolidation, Dia Bras mailed a letter of transmittal to each of its registered shareholders, who will be required to exchange their current share certificates for a Direct Registration Advice representing consolidated common shares of Dia Bras. Shareholders that hold their shares through a securities broker or dealer, bank or trust company will not be required to take any measures.

Exercise of Warrants

Dia Bras would like to further announce that it expects to have raised a total of $12,055,000 from the exercise of outstanding options between November 2010 and January 2011. As previously disclosed in its third quarter 2010 financial statements, $5,000,000 was raised during November 2010 and 25,000,000 shares were issued. The Company has recently seen interest by the holders of the warrants which expire on the 9th of January 2010, and expects that it will have raised an additional $7,054,545.50 and have issued an additional 70,545,455 shares on a pre-consolidated basis (10,077,922 shares on a post-consolidated basis) to these warrant holders.

About Dia Bras

Dia Bras is a Canadian exploration mining company focused on precious and base metals in Chihuahua State and other areas of northern Mexico. The Company is pursuing the development and exploration of its most advanced assets – the Bolivar Property (copper-zinc-silver) and the Cusi Property (silver) and is exploring several precious metal targets such as La Cascada project at the Bolivar Property, the Las Coloradas project at Melchor Ocampo (Zacatecas State), the Bacerac Property (Sonora State) and the La Verde project at the Batopilas Property (Chihuahua State).

The Company's shares trade on the TSX Venture Exchange under the symbol "DIB". 

For further information on Dia Bras Exploration Inc. visit www.diabras.com

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Forward-looking Statements

Except for statements of historical fact, all statements in this news release without limitation regarding new projects, acquisitions, future plans and objectives are forward-looking statements which involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate; actual results and future events could differ materially from those anticipated in such statements.

Contact Information

  • Dia Bras Exploration Inc.
    Daniel Tellechea
    President & CEO
    Dia Bras Exploration Inc.
    Karl J. Boltz
    Vice President, Corporate Development