DEBUT Diamonds Announces Private Placement

Toronto, Ontario, Canada – December 21, 2011 – Debut Diamonds Inc. (“Debut”) is pleased to announce a proposed private placement (the “Private Placement”) of up to 4,285,715 units (each a “Unit”) at a price of $0.35 per Unit.  Each Unit will consist of one flow-through common share within the meaning of the Income Tax Act (Canada) (a “Flow-Through Common Share”) and one half of one flow-though warrant (a “Flow-Through Warrant”) with each whole Flow-Through Warrant exercisable to purchase one non flow-through common share of Debut at a price of $0.45 for a period of 24 months following the closing of the Private Placement, for aggregated consideration of $1,500,000.

Debut has agreed to pay to a finder: (i) 5.0% cash commission; and (ii) 428,571 finder’s options (each a “Finder’s Option”), being 10% of the aggregate number of Units available for purchase under the Private Placement.  Each Finder’s Option shall entitle the holder to purchase one unit (each a “Finder’s Unit”) at a price of $0.35 per Finder’s Unit.  Each Finder’s Unit will consist of one non flow-through common share and one half of one common share purchase warrant.  Each whole warrant is exercisable at a price of $0.45 for a two year period.

The gross proceeds to Debut from the Private Placement will be used to fund exploration expenses which qualify as “Canadian Exploration Expenses” (within the meaning of the Income Tax Act (Canada)) in connection with Debut’s projects in Ontario, including its Nakina properties in Thunder Bay and Porcupine.

All the securities issued pursuant to the Private Placement will be subject to a four (4) month hold period.  The Private Placement is subject to regulatory and other approvals.

The common shares of Debut were listed on the Canadian National Stock Exchange (“CNSX”) on December 13,2011. Pursuant to a previously announced share distribution, KWG Resources Inc. set the close of business on Thursday, Dec. 15, 2011, as the time and date when determining its shareholders of record who will be entitled to participate in the distribution of the shares of Debut. For every 100 shares of KWG then held, shareholders will receive six shares of Debut on Dec. 28, 2011. It is expected that mailing of the share distribution will be completed on Dec. 30, 2011

About CNSX:  CNSX Markets Inc. is a Canadian company that operates two distinct markets: The Canadian National Stock Exchange; and Pure Trading, which provides a high-speed trading venue for stocks listed on other Canadian stock exchanges. CNSX offers lower listing fees and innovative continuous disclosure features designed to minimize regulatory costs while improving the quality of information available to investors.

This Press Release shall not constitute an offer to sell or solicitation of an offer to buy the securities in any jurisdiction.  The common shares and the Warrants comprising the Units or issuable upon exercise of the Warrants and Finder’s Options will not be and have not been registered under the United States Securities Act of 1933 and may not be offered or sold in the United States absent an applicable exemption from the registration requirements.

This Press Release contains forward-looking statements regarding development of Debut’s projects that may involve a number of risks and uncertainties, including market conditions. Actual events or results could differ materially from Debut’s forward-looking statements and expectations herein.

For further information, please contact: 

Bruce Hodgman

Vice President

Tel: (416) 642-3575

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