Shear Diamonds Ltd. closed a private placement that resulted in approximately $2.8 million. Shear issued 2,787,446 conventional units at 36 cents per unit and 4,640,600 flow-through units at 40 cents per unit. The securities are subject to a hold period that expires July 22, 2012.
Proceeds will be used primarily for equipment and other expenses related to company’s efforts to bring its Jericho diamond mine back into production.
In connection with the offering, M Partners Inc. received a cash fee of $171,583 and 445,683 broker warrants. Each broker warrant is exercisable to purchase one common shares at a price of 36 cents until September 21, 2013.