Vaaldiam Resources Ltd.
TSX : VAA

Vaaldiam Resources Ltd.

November 20, 2007 20:07 ET

Vaaldiam Completes Acquisition of Elkedra Diamonds NL and Receives Funds From Escrow

TORONTO, ONTARIO--(Marketwire - Nov. 20, 2007) -

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

Vaaldiam Resources Ltd. ("Vaaldiam" or the "Company") (TSX:VAA) is pleased to announce that it has closed the previously announced acquisition of Elkedra Diamonds NL (the "Acquisition") which received court approval on November 1, 2007, subsequent to receiving shareholder approval at a meeting of Elkedra Diamonds NL shareholders held on October 29, 2007.

With the closing of the Acquisition, the Company has satisfied the conditions to the release of the funds placed into escrow pursuant to the previously announced private placement of subscription receipts (the "Subscription Receipts") that closed on August 15, 2007. In connection with the satisfaction of such conditions, a net amount of approximately $18.6 million was released to the Company. Each Subscription Receipt has been exchanged, without payment of any additional consideration, for one common share of the Company and one-half of one common share purchase warrant of the Company, each whole warrant entitling the holder thereof to acquire one common share of the Company at a price of $1.20 until August 15, 2009. All such common shares and warrants (and securities issuable on exercise of the warrants) are subject to the resale restrictions until December 16, 2007.

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.

Contact Information

  • Vaaldiam Resources Ltd.
    Ken Johnson
    President and Chief Executive Officer
    (416) 363-6927
    or
    Vaaldiam Resources Ltd.
    Janet Reid
    Manager, Investor Relations
    (416) 363-6927
    Website: www.vaaldiam.com