Arctic Star, Kennecott to search for diamonds together
Arctic Star Diamond Corp ADD
Shares issued 20,003,766 May 26 close $0.58
Mon 26 May 2003 News Release
Mr. Patrick Power reports
ARCTIC STAR JOINT VENTURES WITH KENNECOTT
Arctic Star Diamond has signed a letter of intent with Kennecott Canada
Exploration Inc. (KEX), which will form the basis of a new joint venture to
explore for diamonds in Ontario. Recently, KEX conducted a program of till,
esker and beach sampling in Ontario (at the cost of approximately
$800,000), which revealed an anomalous area with significant diamond
mineral indicators with positive chemistry. Due to other budgetary
commitments, KEX has not been able to focus on this opportunity. By
becoming involved Arctic can accelerate the program designed to identify
the source areas.
The joint venture arrangements are as follows:
1. Arctic will have the right to earn a 50-per-cent interest in the JV by
paying $80,000, which has been paid, issuing 120,000 common shares and
carrying out a program of work which will culminate in the drill testing of
10 targets by the end of 2004; the summer work program is to commence
forthwith;
2. KEC will immediately provide Arctic with the results of all work
performed to date; and
3. KEX can elect to earn a 75-per-cent interest by solely financing
exploration through to decision to mine at any time within two years of the
joint venture being formed.
Further to an article reported in Stockwatch news on May 23, 2003,
regarding legal proceedings between Arctic and Kennecott, Arctic and
Kennecott wish it to be known that as a result of the signing of the letter
of intent a consent dismissal order will be executed and the claim of
Kennecott will be extinguished. For clarification, the filing of the writ
was not intended by Kennecott as both parties had already reached general
agreement on the JV. Both parties see this as a major step forward in a
mutually beneficial continuing relationship.
(c) Copyright 2003 Canjex Publishing Ltd. stockwatch.com |
