Dianor Resources Inc.
TSX VENTURE : DOR

Dianor Resources Inc.

October 12, 2010 16:42 ET

Dianor Announces Delay in Closing of Initial Draw Down Under Equity Line of Credit

VAL-D'OR, CANADA--(Marketwire - Oct. 12, 2010) -

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Dianor Resources Inc. (TSX VENTURE:DOR) announces that it has not completed a previously-announced initial draw down of $500,000 under its equity line of credit with Kodiak Capital Group, LLC.

As previously announced (press releases September 27th 2010 and October 5th 2010), Dianor sent a notice to Kodiak Capital for an initial draw down of $500,000 under the equity line of credit, and announced that it would issue 7,269,555 common shares to Kodiak Capital at a price of $0.06878 per share, at a closing to be held not later than October 8, 2010. Kodiak Capital has not to date provided the $500,000 required by Dianor's draw-down notice.

Dianor intends to advise Kodiak Capital that the failure to provide the funds constitutes a default under the Amended and Restated Standby Equity Distribution Agreement dated July 9, 2010, between Dianor and Kodiak, as amended. There can be no assurances that Kodiak will fund the draw down in a timely manner.

"Needless to say, we are disappointed that Kodiak Capital has not completed the initial draw down under the equity line of credit" said John Ryder, Dianor's President and CEO. "We are examining all of our options with a view to closing the first draw down as soon as possible."

About Dianor

Dianor is an innovative exploration company focused on advancing diamond exploration properties in the Superior Craton of Canada. The Leadbetter Diamond Project is its most advanced project and is geographically well situated and easily accessible, some 12 kilometres north east of Wawa in Northern Ontario. Substantial exploration work has been conducted on the project since 2005 and in May 2009, the Company received government approval to proceed with a 50,000 tonne bulk sampling programme of the 2.697 Ma old Archean Conglomerate. A preliminary tonnage estimate for this conglomerate is in the range of 549 million to 583 million tonnes (press release July 24th 2007). In addition to diamonds, the conglomerate contains gold, sapphires and rubies (press release January 18th 2007). In 2008, additional diamond discoveries, including rare purple diamonds, were made by the Company in rocks of similar type, age (Archean) and geological settings (press release March 3rd, April 10th, & May 13th 2008) in Quebec. The Quebec diamond properties have increased our portfolio of low cost, accessible exploration targets. These diamond discoveries (Ontario and Quebec) are both unique and amongst the oldest diamond-bearing occurrences in the world.

You can also visit our Web Site: www.dianor.com

Forward-Looking Statements

This news release contains statements that may 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 Dianor Resources Inc. ("Dianor"). 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 Dianor will derive therefrom. Forward-looking information is based on the estimates and opinions of Dianor's management at the time the information is released and Dianor 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 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 release.

Contact Information

  • Dianor Resources Inc.
    Mr. John Ryder, P. Geo.
    President
    819-825-7090
    819-825-7545 (FAX)
    info@dianor.com
    or
    Dianor Resources Inc.
    Mr. Daniel Duval
    Chairman of the Board
    819-825-7090
    819-825-7545 (FAX)
    info@dianor.com
    or
    Resultz Media Group Corp.
    Mr. Tyler M. Troup, B.Comm
    Senior Associate, RMG IR
    877-301-9748
    519-979-7820 (FAX)
    Tyler@thinkRMG.com