Superior Diamonds Closes a Cdn$350,000 Financing.VANCOUVER, British Columbia British Columbia, province (2001 pop. 3,907,738), 366,255 sq mi (948,600 sq km), including 6,976 sq mi (18,068 sq km) of water surface, W Canada. Geography -- Superior Diamonds Inc. (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:SUP) announced today that the non-brokered private placement disclosed on March 3, 2006 has closed, raising aggregate gross proceeds of Cdn$350,000 through the sale of 777,777 non-flow through units at Cdn$0.45 per unit. Each unit consists of one common share and one-half of one share purchase warrant. One whole share purchase warrant entitles the holder to buy one common share for Cdn$0.60 within two years after closing. Superior Diamonds will use the gross proceeds from the private placement for ongoing exploration and development programs in Quebec. The two placees are SIDEX, Limited Partnership, a mining fund which is part of an initiative created by the Government of the Province of Quebec and the Solidarity Fund QFL QFL Quebec Federation of Labour (Canada) QFL Queensland Football League QFL Quoted for Lies (internet slang) QFL Qualified Products List to promote the diversification of exploration, and the Fonds regional de solidarite FTQ FTQ Fédération des Travailleurs du Québec FTQ First Time Quality FTQ Fetch Target Queue FTQ Fond de Solidarité de La Fédération des Travailleurs du Québec Nord-du-Quebec, whose mission is to invest in regional businesses and to provide technical support for the creation and maintenance of jobs in northern Quebec. Superior also announced that it has reached an agreement with Southwestern Resources Corp. to convert a $200,000 long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by issuing 444,444 common shares of the Company to Southwestern at a price of Cdn$0.45 per share. The settlement of the Company's long-term debt through the issuance of shares eliminates a monthly interest expense and enhances the Company's balance sheet. Southwestern now owns 19.2% of the issued and outstanding shares of Superior. The additional shares, which will be subject to a four-month hold period, will be issued upon receipt of acceptance of the transaction by the TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. . Southwestern Resources is an insider of Superior and thus the private placement is considered to be a "related party transaction" as defined under Ontario Securities Commission The Ontario Securities Commission (OSC) is a regulatory agency which administers and enforces securities legislation in the Canadian province of Ontario. The OSC is an Ontario Crown corporation which reports to the Ontario legislature through the Minister of Finance. Rule 61-501 (the "Rule"). The transaction is exempt from the formal valuation and minority shareholder approval requirements of the Rule because neither the fair market value of the securities being issued nor the consideration being paid exceeds 25% of Superior's market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . Superior Diamonds is exploring in Quebec in the Ville Marie and the Desmaraisville regions. Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The Company does not assume the obligation to update any forward-looking statement. The TSX Venture Exchange does not accept responsibility for the ad equacy or accuracy of this release. Superior Diamonds Inc. (TSX VENTURE:SUP) |
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