LONDON, Feb. 5, 2013 (GLOBE NEWSWIRE) -- Americas Diamond Corp. (OTCBB:ADMC) ("Americas Diamond" or "the Company") confirms having entered into non-toxic equity financing agreement for up to $5,000,000.
The company has signed a $3,200,000 financing agreement with an additional option to secure a further $1,800,000, bringing the total value of the deal to $5,000,000 in equity investment over a maximum term of three years. The company has secured equity financing, and as such is debt free.
The funding has been agreed in an effort to further the company's final program of bulk-sampling on the Natal I and II diamond concessions in the Guaniamo district of Bolivar State in Venezuela and other operating expenses.
The Company plans to treat an anticipated 100,000 tonnes of material, which will be processed through the diamond recovery plant. From sampling to date, the Company believes the effort should produce between 10,000 and 20,000 carats in total, which is well in excess of 5,000 carat benchmark, which is the number widely recognized as providing enough of a sample to measure the style of a "diagnostic individual diamond population".
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.
"We're very excited about this non-toxic equity investment, and are looking forward to progressing our work program on the Natal concessions." commented Daniel Martinez, Americas Diamond Corp's Chief Executive Officer. "These funds will allow us to complete our bulk-sampling program that we announced recently. We are excited by the possible magnitude of the primary deposit, which we feel could be considerable, and are eager for our staff on the site to get the program underway."
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.
Disclaimer
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, and include references to undertaking an exploration program on the Natal concessions and the results of such a program. 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 Corp. disclaims any obligation to update any of its forward-looking statements, except as may be required by law.
ON BEHALF OF THE BOARD OF DIRECTORS,
Americas Diamond Corp.
Daniel Martinez
President and Chief Executive Officer