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by Will Purcell

The diamond and specialty minerals stocks box score on Friday was a positive 65-58-167 as the TSX Venture Exchange rose five points to 672. Well, hallelujah! Ewan Mason's Star Diamond Corp. (DIAM) finally has the cash for a prefeasibility study of its mammoth Star-Orion South project in central Saskatchewan -- or at least it will as soon as all the regulatory i's are dotted and the corporate t's are duly crossed. That could take time, given the nature of the private placement with Jean-Raymond Boulle and his Spirit Resources, so Mr. Boulle is also lending Star Diamond $800,000 on favourable terms to tide the company over.

Spirit will pay just three cents per share for 133.33 million Star Diamond shares. Each of those shares comes with a warrant exercisable at four cents per share over the next year -- or at five cents per share before they expire at the end of a second year. (The warrants could survive a third year, but only if Star Diamond fails to complete another placement in which it raises at least $3-million.)

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