Shares issued 23,633,225
2000-02-09 close $0.95
Thursday Feb 10 2000
Mr. Olav Svela reports
Band-Ore Resources has entered into an agreement to acquire a private Ontario
company (Privco), which holds a licence to carry out mineral exploration activities
and acquire a lease to carry out mining on a 25-square-kilometre diamond
prospect in Northern Ontario. The property is subject to a 5-per-cent net sales
return royalty. The property is located in north central Ontario, near the
Kapuskasing structural zone (KSZ) . The KSZ is a narrow, regionally extensive
northerly trending belt of high-grade metamorphic rocks. The KSZ extends from
Lake Superior to James Bay and has been the focus of exploration and scientific
evaluations for diamonds for the past eight years. The property is easily accessible
year-round by paved roads and logging roads.
Pursuant to the agreement, Band-Ore has agreed to acquire all of the outstanding
shares of Privco in consideration of cash payments totalling $1.2-million, payable
over a three-year period, and the issuance of a total of two million common shares
of Band-Ore, of which 1.5 million shares will be issued on closing. The closing of
the acquisition is subject to the fulfilment of a number of conditions, including
obtaining regulatory approval and the completion of satisfactory due diligence. It is
expected that closing will occur before Feb. 28, 2000.
Recently, Privco submitted two samples taken from the property, weighing 63.4
killograms and 70.5 kilograms, for caustic fusion processing and microdiamond
recovery to the laboratory of Kennecott Canada Exploration Inc. in Thunder Bay,
Ont. According to Kennecott's report, the 63.4-kilogram sample yielded a total of
45 diamonds, of which 10 were macrodiamonds (diamonds with one dimension
measuring greater than 0.5 millimetres), including one stone that measured 1.0l
millimetre in one dimension, and 35 were microdiamonds (diamonds with all
dimensions less than 0.5 millimetres). The 70.5-kilogram sample yielded nine
microdiamonds (all dimensions less than 0.5 millimetres). It was reported that the
stones were white in colour and transparent in clarity. The samples were taken
from two outcrop exposures located approximately 0.5 kilometres apart.
Since only a limited amount of sampling and analysis was completed by Privco,
Band-Ore's qualified persons have duplicated the sampling procedures followed
by Privco, as part of Band-Ore's due diligence investigation. These samples are
being analyzed by qualified independent Canadian and South African diamond
laboratories and diamond experts. There are no assurances that the reported
results will be confirmed.
An exploration program consisting of airborne geophysics will commence
immediately following the closing of the transaction. Band-Ore has over $1-million
in the treasury and has an experienced and capable management and board of
directors to supervise and undertake the program.
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