Strike Diamond Corp. Closes Property Payment Debentures
VANCOUVER, BRITISH COLUMBIA - (January 19, 2015) – Strike Diamond Corp. (TSX VENTURE:SRK) ("Strike Diamond" or “the Corporation”) is pleased to announce that it has closed the convertible debentures (the “Convertible Debentures”) previously announced by the Corporation on January 7, 2015.
The Convertible Debentures
As originally detailed in its news release dated January 7, 2015, “Strike Diamond Corp. Announces Property Payment Debentures”, Strike Diamond advises that it has closed two unsecured convertible debentures, having principal of $249,701.40 and $26,812.74 (the “Convertible Debentures”), with a maturity date of February 1, 2016 (the “Maturity Date”). The Convertible Debentures have a 12% interest rate, with all interest paid entirely in common shares of the Corporation on a quarterly basis at the then prevailing market price of Strike Diamond. The principal of the Convertible Debentures may be redeemed at the holder’s election for common equity in Strike Diamond at a price of $0.06 per common share until January 4, 2016, and thereafter $0.10 per common share until the Maturity Date. The Convertible Debentures were issued to Kalt Industries Ltd. in the amount of $249,701.40 and DG Resource Management Ltd. in the amount of $26,812.74.
There were no bonuses, finder’s fees or commissions paid in connection to the Convertible Debentures. The Convertible Debentures are subject to a statutory hold period of four months and one day, being May 6, 2015.
No new Control Persons, as that term is defined by the TSX Venture Exchange, were created as a result of the Convertible Debentures. Strike Diamond reports that both Kalt Industries Ltd. and DG Resource Management Ltd. were previously approved as Control Persons by disinterested shareholders at the most recent shareholder meeting held by the Corporation on October 7, 2014.
Srike Diamond advises that the Convertible Debentures were issued concurrent to an amendment to the Sask Craton property agreement which is described in the section of this news release titled, The Sask Craton Property Amendments.
The Convertible Debentures remain subject to final acceptance by the TSX Venture Exchange.
The Sask Craton Property Amendments
On October 29, 2014, Strike Diamond amended the property agreement (the “October 2014 Sask Craton Property Amendment”) relating to the Sask Craton property (the “Sask Craton Property”). In the October 2014 Sask Craton Amendment, Strike Diamond received cash payment due date extensions by certain vendors of the Sask Craton Property (the “Property Payment Extensions”) relating to aggregate cash property payments of $138,257.10. The Property Payment Extensions provided Strike Diamond with the ability to make certain payments under the Sask Craton Property by January 15, 2015 instead of the prior cash due date of November 1, 2014. In addition, under the October 2014 Sask Craton Amendment, the Corporation confirmed its responsibility for certain exploration work conducted for Strike Diamond on its properties, such work having a value of $119,804.83.
On January 5, 2015, Strike Diamond amended the property agreement relating to the Sask Craton property (the “January 2015 Sask Craton Property Amendment”). In the January 2015 Sask Craton Property Amendment, it was agreed by all parties to the agreement that two vendors of the Sask Craton property, Kalt Industries Ltd. and DG Resource Management Ltd. would have cash payment obligations due to them satisfied by the issuance of unsecured convertible debentures (see above section, The Convertible Debentures). As a result of the Convertible Debentures, Strike Diamond satisfied cash payment obligations of $138,257.07 due January 15, 2015 (the “January Cash Obligation”) and cash payment obligations of $138,257.07 due April 30, 2015 (the “April Cash Obligation”). The January Cash Obligation and the April Cash Obligation had a combined cash payment obligation of $276,514.14, which is equal to the combined principal of the Convertible Debentures. In the January 2015 Sask Craton Property Amendment, Strike Diamond also notified the parties of its name change from Strike Graphite Corp. to Strike Diamond Corp.
About Strike Diamond Corporation
Strike Diamond Corporation operates the Sask Craton Property and the Sask Craton North Property, equating to approximately 1.34 million acres (542,000 hectares) in central-Saskatchewan, which represents the largest mineral tenure position in an emerging diamond exploration district established by the discovery of diamondiferous kimberlites on North Arrow Minerals Inc. and Stornoway Diamond Corp.'s Pikoo property. For more information, please visit www.StrikeDiamond.com.
Forward-Looking Statements
This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently expected or forecast in such statements.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contact Information:
Geoff Balderson Chief Executive Officer 1-604-602-0001
[email protected] www.StrikeDiamond.com