March 17, 2022
Star Diamond Corp. (TSX:DIAM, BUY, C$1.20 target, Timothy Lee) announced that it intends to raise up to C$5M through a non-brokered private placement by issuing units priced at C$0.30 each. Each unit will consist of one common share and one warrant with each warrant entitling the holder to purchase a common share priced at C$0.40 for a period of 24 months. Approximately C$2.5M of the proceeds are expected to be used to settle the current working capital deficiency, ~C$0.5M will be assigned to technically evaluate the company’s mineral property interests, including the Star-Orion South diamond project on the Fort á la Corne property in Saskatchewan, and the remaining ~C$2M is expected to be used for general corporate purposes. The Star-Orion South project is one of the largest development stage diamond projects in the world. A 2018 PEA estimated that ~66M carats of diamonds could be recovered in an open-pit operation over a 34-year mine life, yielding an NPV7% of C$2.0B. Read more
