STAR Diamond Corporation Announces Closing of $1 Million Flow-Though Private Placement Financing and Additional Non Flow-Through Private Placement of up to $2 Million
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NEWS RELEASE December 30, 2020
TSX: DIAM Saskatoon, Saskatchewan
STAR DIAMOND CORPORATION ANNOUNCES CLOSING OF $1 MILLION FLOW-THOUGH PRIVATE
PLACEMENT FINANCING AND ADDITIONAL NON FLOW-THROUGH PRIVATE PLACEMENT
OF UP TO $2 MILLION
SASKATOON, Saskatchewan, December 30, 2020 – Star Diamond Corporation (TSX:DIAM) (“Star Diamond” or
the “Corporation") is pleased to announce the successful closing of a $1.0 million private placement of 5,555,556
Flow-Through Units at a price of $0.18 per Flow-Through Unit (the "Flow-Through Offering").
Each Flow-Through Unit is comprised of one flow-through common share and one-half (1/2) of one flow-through
warrant. Each whole warrant will entitle the holder thereof to purchase one non -flow-through common share
at a price of $0. 25, for a period of twenty-four months from closing. The proceeds from the sale of the Flow -
Through Units will be used by the Corporation to incur Canadian exploration expen ses (“Qualifying
Expenditures”) prior to December 31, 2021 (or December 31, 2022 if the proposals by the Department of Finance
resulting from the COVID -19 pandemic , announced on July 10, 2020 , become law ). The Corporation will
renounce the Qualifying Expenditures to subscribers of Flow-Through Units for the fiscal year ended December
31, 2020.
The Corporation issued Red Cloud Securities Inc., acting as finder in connection with the Flow-Through Offering
(“Finder”), common shares from treasury equal to 5%, and also issued the Finder warrants equal to 5%, of the
number of Flow-Through Units attributable to the Finder pursuant to the Flow-Through Offering (the “Finder’s
Warrants”). In relation to the Offering, the Corporation issued 277,778 common shares and 277,778 in Finder’s
Warrants exercisable at any time up to twenty-four months following the closing of the Flow-Through Offering
at $0.19 per share. All securities issued pursuant to the Flow-Through Offering are subject to a four month hold
period in accordance with applicable securities laws and exchange regulations. The Flow-Through Offering is
subject to TSX acceptance of requisite regulatory filings. Insiders did not participate in the Flow -Through
Offering.
Star Diamond is pleased to also announce that it proposes to undertake a n additional non-brokered private
placement for gross proceeds of up to $2.0 million (the “Offering”). The Offering will be comprised of non-flow-
through units (the “Units”) to be sold at a price of $0.15 per Unit. Each Unit will be comprised of one common
share and one warrant (“Unit Warrant”). The Unit Warrants entitle the holder thereof to purchase one common
share at a price of $0.25, for a period of twenty-four months from closing. The exact number of Units sold will
be determined at closing. The Corporation may pay finders’ fees, comprised of common shares and warrants, in
connection with the Offering. All securities issued pursuant to the Offering will be subject to a four month hold
period in accordance with applicable securities laws and exchange regulations. The Offering is subject to TSX
acceptance of requisite regulatory filings.
About Star Diamond Corporation
Star Diamond is a Canadian based corporation engaged in the acquisition, exploration and development of
mineral properties. Shares of the Corporation trade on the Toronto Stock Exchange under the trading symbol
“DIAM”.
Caution Regarding Forward-Looking Statements
This press release contains "forward-looking statements" and/or "forward-looking information", within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. All statements, other than statements of
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historical fact, are forward -looking statements. Generally, forward -looking statements can be identified by the use of forward- looking
terminology such as "plans", "expect", "is expected", "in order to", "is focused on" (a future event), "estimates", "intends", "anticipates",
"believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "wou ld", or the
negative connotation thereof. Forward- looking statements included or implied in this press release include the tax treatment of f low-
through common shares and the use of the proceeds of the Offering. These forward -looking statements are based on the Corporation's
current beliefs as well as assumptions made by and information currently available to the Corporation. Although management considers
these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. By their very nature,
forward-looking statements involve inherent risks and uncertainties, both general and specific, and risks exist that predictions, forecasts,
projections and other forward -looking statements will not be achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual results to differ materially from the beliefs, plans, objectives,
expectations, anticipations, estimates and intentions expressed in such forward-looking statements.
This press release does not co nstitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States of
America. The securities have not been and will not be registered under the United States Securities Act of 1933 (the “1933 Ac t”) or any
state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the 1933 Act) unless
registered under the 1933 Act and applicable state securities laws, or an exemption from such registration is available.
For further information: [email protected] or (306) 664-2202
www.stardiamondcorp.com
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