Rex Diamond Mining Corporation signs a joint venture agreement with De Beers for exploration in Mauritania
Symbol : RXD
Trading : Toronto Stock Exchange
TORONTO, July 24 /CNW/ - Rex Diamond Mining Corporation is pleased to
announce the signing of a heads of agreement with De Beers Consolidated Mines,
towards the completion of a joint venture agreement, for the exploration of
the Akchar permit in Mauritania, northwest Africa.
Rex began an exploration programme for an economic diamondiferous
kimberlite in Mauritania over three years ago. De Beers has stated that it is
pleased to join Rex in this new joint venture, with the hope of extending this
partnership elsewhere too.
The agreement allows for De Beers to earn 60% in the project, on a non-
dilutive basis to Rex, by spending US$24m or by producing a bankable
feasibility study over five years. The agreement further allows for the full
exchange of data and geological information. It is envisaged by both parties
that should the exploration lead to the establishment of a diamond mine in
Akchar, De Beers will market 100% of the production through its London-based
Diamond Trading Company and will also finance Rex's full share of the
investment.
The Akchar permit covers 10 000km(2). The original Akchar permit owned by
Rex covered 13 426km(2) but was reduced to 10 000km(2) when Rex revised its
permit holdings earlier this month in accordance with the revised Mauritanian
Mining Code. The 3 426km(2) conceded by Rex has since been applied for by De
Beers who will then include this area in the joint venture arrangement. The
total area covered by the joint venture is thus 13 426km(2). Rex retains 100%
ownership of its 9 (nine) other diamond exploration permits in Mauritania,
covering 90 000km(2) of the core of the archean Reguibat craton, where
advanced exploration is continuing at a promising rate.
Rex is pleased to have concluded this win-win agreement with the world's
largest producer, by value, of gem diamonds. The deal combines the
entrepreneurial focus of a junior producer and aggressive explorer, and the
operational experience and financial strength of a global diamond mining
company in an industry where the ownership of a supply of diamonds is a vital
strategic asset.
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For further information: Rex Diamond Mining Corporation: Cassandré
Newton, Email: cassandre@rexmining.com; Katrien Geerts, Email:
katrien@rexmining.com, Tel: + 32 (0) 3 205 90 60, Website:
www.rexmining.com, www.rexdiamonds.com
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