DIAMOND PAGE — Financing for American Gem

Montana-based sapphire producer American Gem (gem-t) has raised $1.3 million in a private placement of 4.4 million shares at 30 cents each.

The purchasers are Canadian and European institutional investors, and proceeds from the issue will be used by American Gem to replenish its working capital. The company has said it will continue its effort to raise financing in order to resolve a working capital deficiency.

In other news, Gregory Dahl has resigned as chairman and chief executive officer of the company and its subsidiaries; he will remain a director.

On an interim basis, American Gem has retained Jeff Taraschi, formerly senior vice-president of jewelry merchandising for the home-shopping firm QVC, to manage the company’s day-to-day operations.

Three directors, including Arthur Soregaroli, Garfield Last and Dennis Bookshester, have resigned from the company’s board in recent months, leaving only Dahl, Hugh Carmichael and Douglas McCallum.