December 21, 2006 15:59 ET

Great Western Diamonds Corp.: Closing of Public Offering

SASKATOON, SASKATCHEWAN--(CCNMatthews - Dec. 21, 2006) - Great Western Diamonds Corp. (TSX VENTURE:GWD) (the "Company") is pleased to announce that it has closed its previously announced public equity offering (the "Offering") for total gross proceeds of $3,486,161.72. The Company issued 5,379,686 flow-through common shares (the "Flow-Through Shares") at $0.52 per Flow-Through Share and 1,530,500 units (the "Units") at $0.45 per Unit. Each Unit is comprised of one common share of the Company and one-half of one common share purchase warrant (the "Warrants"). Each whole Warrant entitles the holder thereof to acquire one additional common share of the Company at a price of $0.60 per common share until December 21, 2008. The Offering was completed with 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. (collectively, the "Agents").

Proceeds from the sale of the Flow-Through Shares will be used to incur Canadian Exploration Expense which will be renounced to subscribers in the 2006 taxation year.

The Agents received a cash commission equal to 7% of the gross proceeds of the Offering and have been granted compensation options entitling the Agents to purchase, until December 21, 2008, up to 483,711 Units being 7% of the number of Units and Flow-Through Shares sold under the Offering at an exercise price of $0.45 per Unit.

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.

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
    Great Western Diamonds Corp.
    Gord Dent
    Manager of Investor Relations
    (306) 668-0701
    Great Western Diamonds Corp.
    226 Cardinal Crescent
    Saskatoon, SK S7L 6H8