Toronto, Ontario, Canada – July 24, 2012 –Debut Diamonds Inc. (“Debut”) is pleased to announce the closing of a purchase agreement (the “Purchase Agreement”) with Keystone Associates Inc. (the “Vendor”) for the purchase by Debut from the Vendor of a 100% interest in 57 unpatented mining claims (the “Mining Claims”) in the Porcupine Mining Division and the Thunder Bay Mining Division of Thunder Bay, Ontario.
The Mining Claims are located northeast and southwest of the company’s Nakina Project, where Debut has an option to earn a 70% operating interest in 28 unpatented mining claims located 125 km north of Nakina, in the James Bay Lowlands. The claims cover a cluster of distinct magnetic features that are interpreted to be potential kimberlite pipes as determined by analysis of airborne magnetic data generated in 2010 by the Ontario Geological Survey.
Under the terms of the Purchase Agreement, Debut agreed to issue to the Vendor 2,680,000 common shares and the Vendor retained a 2% net smelter return royalty, one half of which may be purchased by Debut for $3,000,000 for a period of 6 months after the claims are put into commercial production.
“We are very pleased to have added these additional claims to our holdings at Nakina and this will certainly improve Debut’s potential for success in the area. During the initial exploration phase we plan to recover at least one drill core sample from each of the highest priority targets to determine if they are kimberlites and diamondiferous” said Chris Meraw, President of Debut. “The company expects to conclude its consultation obligations with affected First Nations in the near future and looks forward to commencing the initial diamond drill program as quickly as possible”
Debut’s outstanding warrants are being re-priced effective July 24, 2012. The exercise price to purchase a common share upon exercise of all outstanding warrants will now be $0.07 per share. All other terms and conditions of the outstanding warrants shall remain the same. Debut’s board of directors has also approved the cancellation of all outstanding Debut options subject to the consent of the current option holders.
About Debut Diamonds Inc.
Debut has joint venture and wholly owned properties all of which are located in Northern Ontario; these include the previously discovered MacFadyen Kimberlites and the Pele, Victor West, and Uniform Surround claim blocks adjoining the De Beers Victor Mine. Located in the same region are the company’s Nakina Project, Wawa Project and Canada Chrome Soil Sampling joint venture. The Kyle Kimberlites and Diagnos Initiative are within and adjacent to the Ring of Fire.
Certain of the statements made and information contained herein is considered “forward-looking information” within the meaning of applicable Canadian securities laws. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed in Debut Diamonds periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. Debut Diamonds does not assume the obligation to update any forward-looking statement.