Diadem Resources Ltd. entered into a purchase-sale agreement to acquire remaining 50% stake in Franklin Diamond project in Parry Peninsula of the Northwest Territories from Darnley Bay Resources Ltd. (TSXV:DBL) for CAD 0.15 million in stock on May 7, 2013. Diadem Resources Ltd. will issue 11.7 million Diadem common shares from treasury and 11.7 million warrants at the price of CAD 0.10 per share. DBL will retain a 2% net smelter royalty on the sale of diamonds and all ... other minerals produced from the project properties. Diadem will have the right to purchase 1% of DBL’s 2% aggregate NSR for CAD 1 million in cash. Diadem has agreed to incur a minimum of CAD 1.5 million of expenditures with respect to the Interests on or before the date which is 24 months from the date of the definitive agreement. In the event that Diadem fails to incur the expenditures, then DBL will be entitled to retain all other compensation paid to DBL and Diadem will offer 100% of the interests acquired to DBL in return for a 2% net smelter royalty from the sale of diamonds produced from the interests acquired. This acquisition is subject to the approval of the TSX Venture Exchange, other applicable regulatory authorities and the Inuvialuit Regional Corporation and its affiliates.
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Darnley Bay Resources Ltd. (TSXV:DBL) announced that it intends to complete a non-brokered private placement of 13,000,000 units on best-effort basis at a price of CAD 0.05 per unit for gross proceeds of CAD 650,000 on January 31, 2013. Each unit consists of one common share and one warrant. Each warrant will entitle the holder to acquire one common share at an exercise price of CAD 0.10 per share for a period of three years. On February 28, 2013, the company announced ... that it has issued 14,800,000 units for CAD 740,000. The securities issued in the transaction will be subject to a hold period of four months from the date of issuance. The transaction saw participation from insiders of the company for 6,399,900 units resulting in an increase of the shareholdings for the individuals who participated. The tranche included participation from 27 placees including S. Reford Holdings Ltd., an entity owned by Stephen Reford, which invested for 600,000 units, Stephen Reford, who invested for 420,000 units, Patricia Mannard, who invested for 372,900 units, Jamie Levy and Kerry Knoll, who invested for 1,000,000 units each , and Calumet Concepts Inc., which invested for 3,000,000 units.
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