Vancouver — Northern Canadian explorer
Diamondex has arranged an $11.5-million private placement of 12.8 million units priced at 90 apiece, which regulators are expected to approve. A unit consists of a share and a warrant.
Barrick is subscribing for 11.1 million of the units in two tranches: first the major will buy 7.55 million units, garnering an initial 11% interest in Diamondex; then it will buy 3.6 million units.
Tell Investments will retain its 15% interest in Diamondex and subscribe to 1.7 million units on Barrick’s initial purchase.
Proceeds will be used to fund exploration on properties in the Northwest Territories, Nunavut and northern Quebec, where Diamondex has interests in more than 32,000 sq. km. Some of the prospective diamond claims also hold gold potential.
Diamondex recently began exploring the Lena West project, 900 km northwest of Yellowknife, in a program budgeted at $4.8 million. Ground geophysics is under way, and drilling will test several airborne geophysical and geochemical targets.
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