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Big Red Diamond Corporation: Big Red Diamond Closes Private Placement

^{Published on 2009-07-28 07:16:22, Last Modified on 2009-07-28 07:16:29 - Market Wire}
 

MONTREAL, CANADA--(Marketwire - July 28, 2009) - As previously reported on July 23, 2009, Big Red Diamond Corporation ("BRDC", or the "Company")(TSX VENTURE:DIA) is pleased to announce that it has closed, on July 22nd, 2009 a non-brokered private placement of 50 units for a total amount of $75,000 (the "Private Placement").

Each unit, at a price of $1,500, is comprised of one hundred thousand common shares of BRDC at a price of $0.015 per share and one hundred thousand common share purchase warrants. Each common share purchase warrant shall entitle its holder to subscribe at any time within the first 12 months of the closing, one additional common share of BRDC at an exercise price of $0.05 per common share and at any time within the second 12 month period from the closing, one additional common share of the Company at an exercise price of $0.10 per common share - one full warrant will be required to subscribe for one common share. In the event that the closing bid price of BRDC's Share is: i) greater than or equal to $0.075, for a period of 15 consecutive trading days, within the first 12 months period from the Closing Date; or ii) greater than or equal to $0.125, for a period of 15 consecutive trading days, within the second 12 months period from the Closing Date, the Company will have the right to force the warrant holders to exercise the Warrants.

Mr. Perrault, President & CEO of the Company (insider), has participated in the private placement and has acquired a total of 3 units for an investment of $4,500.

The Private Placement was completed under the terms of a price protection request which was submitted to the TSX Venture Exchange on June 22, 2009 where the share price of the Company was then at $0.015 per share.

The units to be issued under the Private Placement will be subject to a resale restriction of four months and one day. The proceeds of the Private Placement will be used for general working capital purposes.

Final approval by the TSX Venture Exchange has been received for this financing.