Diamond Exploration Inc.

Diamond Exploration Inc.

June 23, 2009 15:43 ET

DIX Announces Private Placement


Diamond Exploration Inc. (TSX VENTURE:DIX) is pleased to announce that, subject to regulatory acceptance, the Company has arranged a non-brokered private placement of 2,400,000 flow-through units ("FT Units") at a price of $0.10 per FT Unit and 870,000 non-flow-through units ("NFT Units") at a price of $0.10 per NFT for total gross proceeds of $327,000. Each FT Unit will consist of one flow-through common share and one non-flow through common share purchase warrant ("Warrant"). Each NFT Unit will consist of one non-flow-through common share and one Warrant. Each Warrant will entitle the holder thereof to acquire one common share of the Company for a period of five years at a price of $0.15 per share. MineralFields Group anticipates purchasing 750,000 FT Units.

The Company will pay a cash finder's fee to First Canadian Securities® equal to 5% of the gross proceeds received by the Company from the sale of 750,000 FT Units under the offering. In addition, the Company will issue 75,000 non-flow-through finder's option, entitling the holder thereof to acquire one NFT Unit for a period of two years at a price of $0.10 per share.

Proceeds will be used for exploration on the Company's Cobalt and Bridge River properties and general working capital purposes.

All securities issued in connection with this financing will be subject to a four month hold period.

About MineralFields, Pathway and First Canadian Securities®"

MineralFields Group (a division of Pathway Asset Management), based in Toronto and Vancouver, is a mining fund with significant assets under administration that offers its tax-advantaged super flow-through limited partnerships to investors throughout Canada as well as hard-dollar resource limited partnerships to investors throughout the world. Pathway Asset Management also specializes in the manufacturing and distribution of structured products and mutual funds (including the Pathway Multi Series Funds Inc. corporate-class mutual fund series). Information about MineralFields Group is available at www.mineralfields.com. First Canadian Securities® is active in leading resource financings (both flow-through and hard dollar PIPE financings) on competitive, effective and service-friendly terms, and offers investment banking, mergers and acquisitions, and mining industry consulting, services to resource companies. MineralFields and Pathway have financed several hundred mining and oil and gas exploration companies to date through First Canadian Securities®.

"We are very pleased to be commencing this relationship with MineralFields Group", said Robin Dow. This is an important milestone in the growth of Diamond Exploration and we look forward to working with MineralFields Group as we develop our Cobalt and Bridge River properties."

This press release contains forward-looking information within the meaning of Canadian securities laws. Such information includes, without limitation, information regarding the closing of the proposed private placement and the anticipated business and financing plans of the Company. Although the Company believes that such information is reasonable, it can give no assurance that such expectations will prove to be correct. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. The Company cautions investors that any forward-looking information provided by the Company are not guarantees of future results or performance, and that actual results may differ materially from those in forward looking information as a result of various factors, including, but not limited to, the state of the financial markets for the Company's equity securities, the state of the market for diamonds or other minerals that may be produced generally, recent market volatility; variations in the nature, quality and quantity of any mineral deposits that may be located, the Company's ability to obtain any necessary permits, consents or authorizations required for its activities, to raise the necessary capital or to be fully able to implement its business strategies and other risks associated with the exploration and development of mineral properties. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through the Company's website www.diamondexplorationinc.com

Contact Information