EDMONTON, ALBERTA--(April 11, 2008) - Grizzly Diamonds Ltd. (TSX VENTURE:GZD) (FRANKFURT:G6H) (the "Corporation") today announced that it has closed a non-brokered private placement offering ("Offering") of an aggregate of 971,000 units ("Units") at a price of $1.00 per Unit, for gross proceeds of $971,000. Each Unit consisted of one common share of the Corporation ("Common Share") and one-half of a non-transferable share purchase warrant ("Warrant") and each whole Warrant entitles the holder to acquire one additional Common Share at a price of $1.25 until April 11, 2010. Insiders of the Corporation purchased an aggregate of 25,000 Units.
In connection with the Offering, the Corporation paid Pope & Company Limited the sum of $56,220 together with non-transferable compensation warrants ("Compensation Warrants") to acquire up to 66,220 Common Shares (equal to 7% of the Units sold to non-Insiders) at a price of $1.00 per Common Share until April 11 2010. The Corporation also paid Advice Portfolio Management GmbH the sum of $10,000. The cash commissions paid by the Corporation was equal to 7% of the gross proceeds from the sale of Units to non-Insiders.
The Units were sold to qualified purchasers in reliance upon exemptions from the prospectus and registration requirements of applicable securities legislation. The securities comprising the Units, the Compensation Warrants together with any Common Shares issued pursuant to the exercise of the Warrants and Compensation Warrants will be subject to a restricted period expiring on August 12, 2008.
Grizzly Diamonds is an aggressive Canadian exploration company focused on exploring for diamonds in Alberta and precious metals in North America. It currently holds diamond properties in the Buffalo Head Hills, Birch Mountains and Pelican Mountain areas of Alberta totaling over three million acres which host prospective geophysical targets and associated diamond indicator minerals. In British Columbia, the Company has five precious metal properties totaling over 35,000 acres.
All 2008 field programs are being conducted under the supervision of Michael Dufresne, P. Geol., a principal of APEX Geoscience Ltd. and a Qualified Person under NI 43-101.
On behalf of the Board
Grizzly Diamonds Ltd.
Brian Testo, President
This news release contains forward-looking statements regarding ongoing and upcoming exploration work and expected geology, geological formations and structures. Actual results may differ materially from those anticipated in these statements.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
For more information, please contact
Grizzly Diamonds Ltd.
Brian Testo
President
(780) 693-2365 or (780) 425-BEAR (2327)
Website: www.grizzlydiamonds.com
or
AGORACOM Investor Relations
Email: GZD@Agoracom.com
Website: www.agoracom.com/IR/Grizzly
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