Dianor Resources Inc.

Dianor Resources Inc.

September 20, 2010 12:38 ET

Dianor Obtains Regulatory Approval for Final Base Shelf Prospectus for $30 Million Equity Line of Credit With Kodiak Capital Group, LLC

All regulatory approvals have now been obtained for equity line of credit


Dianor Resources Inc. (TSX VENTURE:DOR) is pleased to announce that it has filed, and obtained a receipt for, a final base shelf prospectus qualifying shares to be issued by Dianor to Kodiak Capital Group, LLC of New York under a previously-announced $30 million equity line of credit (press releases March 3rd 2010 and July 19th 2010). Dianor filed the final base shelf prospectus with the securities regulatory authorities of Québec, Ontario, Alberta and British Columbia.

Dianor has now received all regulatory approvals for the equity line of credit with Kodiak Capital. Dianor will be entitled to file a prospectus supplement each time that it draws down funds under the equity line.

Dianor intends to use the funding from the equity line of credit to advance bulk sampling of the Leadbetter Diamond Project, Dianor's flagship project located near Wawa, Ontario, and for working capital.

As a result of comments from the Canadian securities regulatory authorities with respect to the equity line of credit, the closing of a first draw down by Dianor under the equity line with Kodiak must be in an amount of not less than $500,000 and preceded by a closing of a first advance to Dianor of not less than $1 million under Dianor's previously-announced Credit Agreement with Third Eye Capital Corporation, as administrative agent, and a syndicate of lenders (press release August 30th 2010). Dianor will announce by press release any draw down of funds by Dianor under the equity line of credit with Kodiak or closing of an advance under the Credit Agreement.

A copy of the final base shelf prospectus is available on SEDAR (www.sedar.com) under Dianor's company profile.

About Kodiak Capital Group, LLC

Kodiak Capital Group, LLC is engaged in assisting growth companies in all facets of their long term strategy by providing capital and progressive business solutions. Kodiak manages a portfolio of investments in public and private equities. Founded in 2009, Kodiak has already transacted in excess of $100 million in financing for companies across a multitude of industries, including biotechnology, business services, consumer products, defense, healthcare, Internet, manufacturing, medical devices, natural resources, oil and gas, renewable energy and wireless communications. Headquartered in New York City, Kodiak has assisted companies throughout North America and Australia.

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.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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.

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

Contact Information

  • Dianor Resources Inc.
    Mr. John Ryder, P. Geo.
    819-825-7545 (FAX)
    Dianor Resources Inc.
    Mr. Daniel Duval
    Chairman of the Board
    819-825-7545 (FAX)
    Resultz Media Group Corp.
    Mr. Tyler M. Troup, B.Comm
    Senior Associate-RMG IR
    519-979-7820 (FAX)