Diaz Resources Ltd.
TSX : DZR

Diaz Resources Ltd.

December 11, 2006 08:16 ET

Diaz Announces $2 Million Flow-Through Share Financing

CALGARY, ALBERTA--(CCNMatthews - Dec. 11, 2006) -

Not for Dissemination to the United States Newswire Services or for Dissemination in theUnited States.

Diaz Resources Ltd. (TSX:DZR) ("Diaz" or the "Company") announced today that it has entered into an agreement with Research Capital Corporation ("Research Capital") to issue on a private placement, bought-deal basis, 1,500,000 common shares issued on a "flow-through" basis (the "Flow-Through Shares") at a price of $1.00 per Flow-Through Share for gross proceeds of approximately $1.5 million. The Company has also granted to Research Capital an option to increase the size of the offering by up to an additional 500,000 Flow-Through Shares, issued at a price of $1.00 per Flow-Through Share at any time prior to closing of the offering. Closing of the offering is subject to receipt of all necessary regulatory approvals and is anticipated to occur the week of December 18, 2006, but not later than December 29, 2006.

Proceeds from the issuance of the Flow-Through Shares will be used to incur Canadian exploration expenses on continued exploration of the Company's Canadian oil and gas properties prior to December 31, 2007 and will be renounced to subscribers of the Flow-Through Shares effective December 31, 2006.

Diaz is an oil and gas exploration and production company based in Calgary, Alberta. Diaz's current focus is on shallow gas developments in southern Alberta, natural gas exploration in central and southern Alberta and deep gas exploration in Texas.

Forward-looking statements - statements included in this press release that are not historical facts may be considered "forward-looking statements." All estimates and statements that describe the Company's objectives, goals or future plans are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties where actual results could differ materially from those currently anticipated.

THE TORONTO STOCK EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.

Contact Information

  • Diaz Resources Ltd.
    Robert W. Lamond
    Chairman
    (403) 269-9889
    (403) 269-9890 (FAX)
    or
    Diaz Resources Ltd.
    Donald K. Clark
    Chief Operating Officer
    (403) 269-9889
    (403) 269-9890 (FAX)
    Email: info@diazresources.com
    Website: www.diazresources.com