GREAT WESTERN DIAMONDS CORP.
TSX VENTURE : GWD

GREAT WESTERN DIAMONDS CORP.

February 27, 2008 15:01 ET

Great Western Diamonds Corp. Closes Private Placement

SASKATOON, SASKATCHEWAN--(Marketwire - Feb. 27, 2008) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Great Western Diamonds Corp. (TSX VENTURE:GWD) ("the Company") is pleased to announce that it has closed the previously announced private placement of flow-through shares. Thomas Weisel Partners Canada Inc. (the "Agent") acted as sole agent for the placement which consisted of 8,000,000 flow-through shares priced at C$0.25 for aggregate gross proceeds of C$2,000,000.

In connection with the closing today, the Agent received a cash commission equal to 7.5% of the gross proceeds of the placement and has been granted 600,000 broker warrants, each such broker warrant entitling the Agent to acquire one common share of the Company at a price of C$0.25 until February 27, 2009.

The flow-through shares issued in the placement will be subject to a four-month "hold period" under applicable Canadian securities legislation expiring on June 28, 2008. The Company plans to use the net gross proceeds from the sale of the flow-though shares for general exploration expenditures, that will constitute Canadian Exploration Expenses (as defined in the Income Tax Act), such expenses will be renounced for the 2008 taxation year.

Completion of the financing remains subject to the final approval of the TSX Venture Exchange.

Great Western Diamonds Corp. is an exploration company focused on the 100% owned Candle Lake Diamond Project in central Saskatchewan and the Rondonia Diamond Property in Brazil.

The securities being offered have not, nor will they be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from the U.S. registration requirements. This release does not constitute an offer for sale of 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.
    Robert Yeoman
    Vice President
    (416) 363-6927