Diadem Completes $500,000 Financing.TORONTO--(BUSINESS WIRE)--March 26, 1998--(ME:DIR.) Diadem diadem, in ancient times, the fillet of silk, wool, or linen tied about the head of a king, queen, or priest as a distinguishing mark. Later, it was a band of gold, which gave rise to the crown. In heraldry, the diadem is one of the arched bars that support the crown. Resources Ltd. (DIR.ME) is pleased to announce the completion of a $500,000 financing, the proceeds of which will be used to continue exploration and development work on its La Mestiza gold project in Nicaragua and its Leek leek: see onion. leek Hardy, vigorous, biennial plant (Allium porrum) of the lily family, native to the eastern Mediterranean and the Middle East. It has a mild, sweet, onionlike flavour. Springs diamond project in California, as well as general working capital. Diadem has completed the sale of one unit consisting of a two-year, CDN (Content Delivery Network) A system of distributed content on a large intranet or the public Internet in which copies of content are replicated and cached throughout the network. $500,000 unsecured debenture and 952,000 common share purchase warrants effective March 24, 1998. The debenture is convertible at the option of the holder into Diadem common shares at any time in whole or in part at a conversion price of $0.53 per share. Interest on the debenture at an annual rate of 9.75 percent is payable semi-annually in cash or at Diadem's option, in Diadem common shares. The debenture is retractable re·tract v. re·tract·ed, re·tract·ing, re·tracts v.tr. 1. To take back; disavow: refused to retract the statement. 2. at the option of the holder at any time in whole or in part. Diadem shall have the option of satisfying a retraction In the law of Defamation, a formal recanting of the libelous or slanderous material. Retraction is not a defense to defamation, but under certain circumstances, it is admissible in Mitigation of Damages. Cross-references Libel and Slander. by either paying cash or issuing Diadem common shares on the basis of 100 percent of the 10-day average trading price Trading price The price at which a security is currently selling. of Diadem common shares immediately preceding a retraction notice. The warrants will entitle the holder to purchase an aggregate of 952,000 common shares of Diadem at a price of $0.53 until 5:00 p.m. on March 24, 2000. The purchase price for the unit was satisfied by the payment of $350,000 in cash and a promissory note promissory note, unconditional written promise to pay a certain sum of money at a definite time to bearer or to a specified person on his order. Promissory notes are generally used as evidence of debt. for $150,000 due September 24, 1998. H&H Securities Ltd. acted as Diadem's agent in the transaction. Diadem also announces that the entire principal amount of the $500,000 unsecured convertible debenture Convertible Debenture Any type of debenture that can be converted into some other security. Notes: For example, a convertible bond can be converted into stock. issued on August 29, 1997 has been converted in accordance with its terms resulting in the issuance of an aggregate of 1,322,512 common shares and 1,322,512 common share purchase warrants. The warrants have an exercise price of $1.07 and may be exercised at any time on or before August 29, 1999. Diadem also announces that $100,000 of the $1,000,000 unsecured convertible debenture issued on July 17, 1997 has been retracted by the holder in accordance with its terms resulting in the issuance of an aggregate of 198,823 additional common shares. The Company currently has 25,661,936 common shares outstanding (29,541,217 fully diluted). An additional $5,392,363 would be realized if all existing stock options and share purchase warrants were exercised. Diadem is a diversified mineral exploration and development company with its primary focus of activities being gold and diamond exploration and development. CONTACT: Diadem Resources Ltd. Daniel T. Farrell, 416/364-2893 or 888/434-2336 |
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