GREAT WESTERN DIAMONDS CORP.
TSX VENTURE : GWD

GREAT WESTERN DIAMONDS CORP.

November 17, 2006 17:31 ET

Great Western Diamonds Announces Public Offering

SASKATOON, SASKATCHEWAN--(CCNMatthews - Nov. 17, 2006) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

Great Western Diamonds Corp. ("Great Western Diamonds" or the "Company") (TSX VENTURE:GWD) is pleased to announce that it has engaged a syndicate of Agents led by Wellington West Capital Markets Inc. and including GMP Securities L.P., National Bank Financial Inc., and Blackmont Capital Inc. for a proposed marketed public equity offering (the "Offering"). Gross proceeds from the Offering, anticipated to be approximately $8 million, will be used primarily for exploration activities at the Company's Candle Lake, Centennial and Snowden diamond properties in Saskatchewan. The Company has filed a preliminary short form prospectus with the securities regulatory authorities in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario in connection with the Offering.

The Offering will consist of flow-through common shares ("Flow-Through Shares") and units ("Units"). Each Unit shall be comprised of one common share of the Company and one-half of one common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share of the Company for a period of 24 months commencing from the closing of the Offering. Final pricing and determination of the number of Units and Flow-Through Shares to be sold under the Offering will occur immediately prior to the filing of the (final) short form prospectus in respect of the Offering.

Proceeds from the sale of Flow-Through Shares will be used to incur Canadian Exploration Expenditure which will be renounced to subscribers in the 2006 taxation year. The balance of the net proceeds from the Offering will be used for general corporate purposes.

Closing of the Offering is expected to occur on or about December 14, 2006 and is subject to certain conditions, including but not limited to, receipt of all necessary securities regulatory approvals (including the approval of the TSX Venture Exchange).

Great Western Diamonds Corp. is an exploration and mine development company currently focused on several diamond prospects including the 100%-owned Candle Lake Diamond Project in central Saskatchewan. The Company is committed to increasing shareholder value through an aggressive, results-driven exploration and evaluation program targeted on reaching a pre-feasibility decision on the Candle Lake kimberlites by the end of 2008. While Candle Lake is the core diamond project, the Company continues to build a balanced and geographically diverse project portfolio with both advanced and grass-root diamond properties.

Brent Jellicoe, P.Geo., President and CEO

The securities being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States in the absence of registration or an applicable exemption from the registration requirements. This press release does not constitute an offer to sell or the solicitation of an offer to purchase securities in the United States.


The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Great Western Diamonds Corp.
    Brent Jellicoe
    President & CEO
    (306) 651-7255
    or
    Great Western Diamonds Corp.
    Gord Dent
    Manager of Investor Relations
    (306) 668-0701
    or
    Great Western Diamonds Corp.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8
    Email: info@gwdc.ca
    Website: www.gwdc.ca