Dianor Resources Inc.
TSX VENTURE : DOR

Dianor Resources Inc.

October 22, 2010 15:54 ET

Dianor Completes Closing of Initial Draw Down Under Equity Line of Credit

VAL-D'OR, CANADA--(Marketwire - Oct. 22, 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) has completed a previously-announced (press releases September 27th 2010, October 5th 2010 and October 12th 2010) initial draw down of $500,000 under its equity line of credit with Kodiak Capital Group, LLC by issuing 7,269,555 common shares at a price of $0.06878 per share. In addition, as previously announced, Dianor issued 908,397 shares in partial consideration for the equity line of credit.

Additional draw downs under the equity line of credit with Kodiak Capital will be under the formula in the Amended and Restated Standby Equity Distribution Agreement dated July 9, 2010, between Dianor and Kodiak, as amended and in the Short Form Prospectus (www.sedar.com) which states that the drawdown will be calculated as follows: " 200% of daily volume of the Common Shares on the TSXV for the three Trading Days immediately prior to the date of delivery of the Draw-Down Notice, calculated by dividing the total volume of Common Shares traded on the TSXV for such period by three, multiplied by the average closing price of the Common Shares on the TSXV for the same period. The price per Subscription Share to be paid by the Subscriber (the "Purchase Price") will be equal to the volume weighted average price of the Common Shares on the TSXV for each Trading Day during the Draw-Down Pricing Period (the "Market Price"), less a discount of 10%, subject to a minimum Purchase Price of $0.05. The number of Subscription Shares to be purchased by the Subscriber on each Settlement Date will be equal to the Draw-Down Amount divided by the Purchase Price."

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.

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
    www.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