Shear Minerals, which has an agreement in place to buy the Jericho diamond mine, engaged RBC Capital Markets as lead agent and Macquarie Capital Canada Ltd. to raise approximately $15 million by way of a private placement. The offer will include units and flow-through common shares whereas each unit will consist of one common share and one common share purchase warrant.

Net proceeds from the private placement will be used to fund the Jericho acquisition, exploration and development activities and general corporate purposes. Gross proceeds will be used to incur exploration expenses prior to December 31, 2011. Shear Minerals is expected to renounce the qualifying expenditures to subscribers of the flow-through common shares with an effective date not later than December 31, 2010.

Shares in Shear Minerals (SRM.V) were up 44 percent in morning trading at 7 cents.