Diamondex lands Barrick as major investor

Vancouver – Northern Canadian explorer Diamondex Resources (DSP-V) has secured Barrick Gold (ABX-T) as a significant investor in the company.

Diamondex has lined up an $11.5 million private placement financing consisting of 12.8 million units (comprised of a share and a warrant) at 90 a piece, all subject to regulatory approval.

Barrick Gold is set to take down the lion’s share of the total. The gold major is subscribing to a total of 11.1 million of the units, in two tranches. The first tranche will see Barrick purchase 7.55 million units, garnering an initial 11% interest in Diamondex. Barrick’s second tranche in subject to shareholder approval and will see it buy an additional 3.6 million units on the same terms.

Major Diamondex shareholder Tell Investments has elected to maintain its 15% interest and will subscribe to 1.7 million units upon Barrick’s initial purchase.

Proceeds will fund this year’s exploration on the company’s extensive land package in the Northwest Territories, Nunavut and northern Quebec. Diamondex holds interest in over 32,000 sq. km of prospective diamond claims, which also hold some gold potential.

Diamondex saw brisk trading following the news, up 13% to close at 90 per share on strong volume of almost 350,000.