LONDON, Feb. 25, 2013 (GLOBE NEWSWIRE) -- Americas Diamond Corp. (OTCBB:ADMC) ("Americas Diamond" or "the Company") is pleased to announce the Company has already drawn $245,000 from the recently executed equity financing agreement.
The Company has received the draw-down under the terms of the equity investment agreement that does not include any debt financing and facilitates funding of up to $5,000,000.
Under the terms of the agreement the Company shall issue restricted common shares of the Company at Unit Price. The Unit Price means a price equal to the 95% of the volume-weighted average of the closing price of Common Stock, for the ten (10) days immediately preceding the date of the Notice. Each unit shall consist of one share (restricted) of the common stock of the Company and one share purchase warrant (each a 'Warrant'). Each Warrant shall entitle the Subscriber to purchase one additional share of Common Stock, at an exercise price equal to 110% of the Unit Price, at which the Unit containing the Warrant being exercised was issued, for a period of two (2) years from the date such Warrant is issued.
The funds have been drawn to support general working capital and payments for the plant and equipment as a result of the Company's recently executed letter of intent to acquire SUDAM Diamonds Ltd. The plant and equipment consists of a 3-stage treatment plant, 50-70tph scrubber, 10tph DMS plant and X-Ray final recovery section being the only diamond recovery plant of its type in Venezuela.
The funds from the financing agreement are also expected to fund the Company's recently announced bulk-sampling program.
"Our investors in Americas Diamond Corp. have clearly affirmed their belief in our commitment to increase shareholder value through operational investments and production," stated Daniel Martinez, Chief Executive Officer of Americas Diamond Corp. "This capital transaction provides us with $245,000 of new working capital to further bolster our financial position and our ability to invest in this state of the art plant and equipment, and to further explore the diamond potential of the Natal I and II concessions."
ABOUT AMERICAS DIAMOND: Americas Diamond Corp., (OTCBB:ADMC), is a publicly traded diamond and precious metals exploration company focused on effectively and efficiently acquiring, exploring and developing high impact natural resource properties. More information can be found on our website, www.AmericasDiamondCorp.com.
Certain statements in this press release are forward-looking and involve a number of risks and uncertainties. Such forward-looking statements are within the meaning of that term in Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Americas Diamond Corp. bases these forward-looking statements on current expectations and projections about future events, based on information currently available. The forward-looking statements contained in this press release may also include statements relating to Americas Diamond Corp.'s anticipated financial performance, business prospects, new developments, strategies and similar matters. Americas Diamond. disclaims any obligation to update any of its forward-looking statements, except as may be required by law. Americas Diamond Corp. is required to issue $13,000,000 worth of its common shares to acquire the Natal diamond concessions and there can be no assurances that this acquisition will close.
ON BEHALF OF THE BOARD OF DIRECTORS,
Americas Diamond Corp.
Daniel Martinez
President and Chief Executive Officer