Diamond Frank Exploration Inc.
TSX VENTURE : DOD

Diamond Frank Exploration Inc.

October 06, 2010 17:01 ET

Diamond Frank Exploration Closes a $3,000,000 Private Placement

LAVAL, QUEBEC--(Marketwire - Oct. 6, 2010) - NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Diamond Frank Exploration Inc. («Diamond Frank») (TSX VENTURE:DOD) announces the closing of a brokered private placement led by BayFront Capital Partners Ltd. (the "Agent") for total gross proceeds of $3,000,000 (the "Placement"). In connection with the Placement, Diamond Frank issued a total of 12,000,000 units (the "Units").

Each unit at a price of $0.25 per Unit is comprised of one (1) common share and one (1) warrant entitling to subscribe for one (1) common share of Diamond Frank at the price of $0.32 for a period of 18 months from closing.

Under the Placement, Diamond Frank paid the Agent a cash commission of $300,000 and issued 1,200,000 non-transferable warrants, each entitling the Agent to subscribe for one (1) unit of Diamond Frank at a price of $0.25 and comprised of one (1) common share and one (1) warrant having the same terms and conditions as the warrants included in the Units. The securities issued under this Placement will be subject to a four-month and one day hold period expiring on February 7, 2011

The proceeds of the Placement will be used to finance the Company's exploration work on its Quebec properties and for general working capital.

Note

The managements and directors of Diamond Frank are committed for a minimum period of 120 days not to sell any shares or options of the company in the interest of its many shareholders.

The common shares of Diamond Frank Exploration are listed on the TSX Venture Exchange under the symbol "DOD".

This news release contains statements that constitute "forward-looking information" or "forward-looking statements" within the meaning of applicable securities legislation. This forward-looking information is subject to numerous risks and uncertainties, certain of which are beyond the control of Diamond Frank. Actual results or achievements may differ materially from those expressed in, or implied by, this forward-looking information. No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits that Diamond Frank will derive therefrom. Forward-looking information is based on the estimates and opinions of Diamond Frank's management at the time the information is released and Diamond Frank does not undertake any obligation to update publicly or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. Neither 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 release.

Contact Information

  • David Mc Donald
    President and CEO
    450-622-4066
    Toll Free: 1-877-622-4004
    450-622-4337 (FAX)
    info@diamondfrank.com