Diamondex Resources Ltd.

Diamondex Resources Ltd.

December 06, 2007 17:10 ET

Diamondex Announces $5.0 Million Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 6, 2007) -


Diamondex Resources Ltd. ("Diamondex") (TSX VENTURE:DSP) is pleased to announce that the Company, subject to regulatory approval, has arranged a private placement of up to 9,360,000 flow-through common shares ("Flow-Through Shares") at $0.25 per Flow-Through Share for gross proceeds of up to $2,340,000 and up to 13,300,000 units ("Units") at $0.20 per Unit for gross proceeds of up to $2,660,000 (the "Private Placement"). Each Unit will consist of one common share and one-half of one common share purchase warrant (each whole warrant a "Warrant"). Each Warrant will be exercisable for an additional common share ("Warrant Share") of the Company for a period of 12 months from the date of closing ("Closing Date") at a price of $0.25 per Warrant Share.

In the event that Diamondex's Common Shares trade at a closing price on the TSX Venture Exchange of greater than $0.50 per share for a period of 20 consecutive trading days at any time after four months and one day after the Closing Date, Diamondex may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by Diamondex.

Diamondex will ensure that gross proceeds from the sale of the Flow-Through Shares will be used to incur Canadian Exploration Expenses for the purposes of the Income Tax Act (Canada) and such Canadian Exploration Expenses will be renounced with an effective date of no later than December 31, 2007. The net proceeds from the sale of the Units will be used for working capital purposes. All securities issued in connection with the Private Placement will be subject to a four month hold period. The Private Placement is scheduled to close on or about December 20, 2007 and is subject to regulatory approval.

Diamondex will pay a cash Finders' fee equal to 7% of the total gross proceeds on the sale of certain Flow-Through Shares and Units. In addition, the Finders' will receive compensation warrants ("Compensation Warrants") exercisable for non-flow-through common shares equal to 7% of the total number of those certain Flow-Through Shares and Units sold. The Compensation Warrants will be exercisable at a price of $0.25 per share for a period of 12 months after the Closing Date.

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.


Randy C. Turner, President

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this news release.

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