Diamonds North Closes Plan of Arrangement for Shareholders to Receive Uranium North
Vancouver, August 1, 2006, - Diamonds North Resources Ltd. (TSX-V: DDN) ("Diamonds North") and Uranium North Resources Corp. ("Uranium North") announce that the Plan of Arrangement between the Diamonds North and Uranium North closed on July 28, 2006. For complete particulars of the Plan of Arrangement, see Diamonds North's News Release NR06-08 issued March 16, 2006. As a result of the closing, shareholders of record of Diamonds North as of July 28, 2006, as determined by the registrar and transfer agent of Diamonds North and intermediaries, have been issued one common share of Uranium North for each six common shares of Diamonds North held. No fractional shares have been issued and fractions were resolved by rounding down. Certificates for the common shares of Uranium North will be mailed to shareholders.
Upon the closing of the Plan of Arrangement on July 28, 2006, Uranium North became a reporting issuer in British Columbia and Alberta. The financial year end of Uranium North has been set at February 28. Uranium North anticipates filing on SEDAR audited financial statements prepared for the period from incorporation on March 1, 2006 to May 31, 2006. Thereafter, quarterly reports (unaudited) will be filed for the quarters ending August 31, 2006 and November 30, 2006, respectively, and the first annual financial statements of Uranium North will be audited and filed for the fiscal year ending February 28, 2007.
As a part of the Plan of Arrangement, the common shares of Diamonds North have been reclassified as new common shares. Certificates for the new common shares will be represented by the present certificates for the existing common shares and there will be no letter of transmittal sent out. Accordingly, no certificates for the new common shares of Diamonds North will be issued and shareholders should not tender their current common share certificates to Diamonds North in exchange for new common share certificates.
To raise funds to complete time sensitive geophysical surveying and prospecting on its uranium properties in 2006, Uranium North completed a non-brokered private placement of 1,025,000 of its common shares at $0.40 per share to raise a total of $410,000 which was subsequently closed on July 28, 2006. The shares are subject to a four month statutory hold period expiring on November 29, 2006. Uranium North plans to raise additional funds necessary to conduct more comprehensive exploration of its uranium properties and for working capital, particulars of which will be announced when terms are settled.
Uranium North will apply for a listing of its common shares on the TSX Venture Exchange and expects its common shares to trade thereon upon the completion of the proposed private placement and acceptance of the listing by the Exchange. As part of the conditions to listing, the Exchange may impose additional resale restrictions on the 1,025,000 private placement shares issued and on any other securities issued by Uranium North prior to listing.
ON BEHALF OF THE BOARDS OF DIRECTORS
Mark Kolebaba
CEO & President, Diamonds North Resources Ltd.
CEO, Uranium North Resources Corp.
For further information, please contact:
Corporate Communications: Nancy Curry
Diamonds North Resources Ltd.
Telephone:
Facsimile:
Website: www.diamondsnorth.com
Email:
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. Statements in this press release, other than purely historical information, including statements relating to the Company's future plans and objectives or expected results, may include forward-looking statements. Forward-looking statements are based on numerous assumptions and are subject to all of the risks and uncertainties inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward-looking statements.