BM Diamondcorp closes $1.2 million private placement

Canadian diamond and gold miner BM Diamondcorp announced last week that it had closed C$1.2 million private placement of four million units at 30 cents per unit. Each unit comprises one share and one-half share purchase warrants purchasing another share at 45 cents on or before July 9, 2005.

The company said the proceed would be used to finance the accelerated exploration program on the company?s Woodlark Island gold project in Papua New Guinea while also financing the startup of Cempaka diamond project in South Kalimantan.

The company?s Cempaka project is an alluvial diamond mine with reserves of 660,000 carats. (alex)