Vaaldiam to Reduce Warrants Exercise Price
Vaaldiam Resources Ltd. announce that subject to regulatory approval Vaaldiam will reduce the exercise prices of a total of 22,326,069 of its currently outstanding warrants from their current exercise prices (which range from $0.55 to $1.89) to $0.08. Of these warrants approximately 18% were initially issued by Great Western Diamonds Corp. and approximately 5% were initially issued by Elkedra Diamonds NL, all of which were replaced by Vaaldiam warrants, pursuant to the previous acquisitions of all of the issued and outstanding shares of each of Great Western and Elkedra. The remainder of the warrants were initially issued by Vaaldiam directly. The existing expiry dates and other conditions of the warrants remain unchanged.
No terms of any warrants will be amended for warrants held by any insiders of Vaaldiam, and it is anticipated that the reduced price of the warrants will become effective on January 16, 2009. The warrants are not listed for trading on any recognized exchange. The purpose of the warrant repricing is to provide the Company with further means of raising additional capital through the potential exercise of these warrants. Proceeds received by the Company from the exercise of the warrants will be used for general working capital purposes.
The warrants issued by Elkedra were replaced by Vaaldiam warrants, pursuant to the acquisition of all issued and outstanding shares of Elkedra on a fully diluted basis, reflecting the ratio of the acquisition for both the exercise prices and the number of warrants issued by Vaaldiam in replacement of the Elkedra warrants. For more information please refer to the press release of October 1, 2007 and documents referenced therein.
The warrants issued by Great Western were replaced by Vaaldiam warrants, pursuant to the acquisition of all issued and outstanding shares of Great Western on a fully diluted basis, reflecting the ratio of the acquisition for both the exercise prices and the number of warrants issued by Vaaldiam in replacement of the Great Western warrants. For more information please refer to the press release of March 10, 2008 and documents referenced therein.
