VANCOUVER, Feb. 2 /CNW/ - Black Swan Resources Limited (BSW-TSE)
announces the signing of a letter agreement with South Atlantic Resources Ltd.
(SCQ-CDNX) to purchase all of the shares of South Atlantic's wholly owned
Brazilian subsidiary, Cobre Sul Mineraçaao Ltda. ("Cobre Sul") for US$1.5
million. Cobre Sul's primary asset is the Santo Antonio alluvial concessions
covering 62 square kilometres extending along a 22 kilometre length of the
Santo Antonio River Valley in the State of Minas Gerais, Brazil. Cobre Sul
also has title to permits and concessions for primary diamond sources in the
Coromandel, Patos de Minas, Corrego D'Antas and Cristais districts.
Black Swan will pay South Atlantic US$1.5 million over four years with
the final payment of US$525,000 to be made on or before the fourth anniversary
of the transfer of Cobre Sul to Black Swan. Black Swan may elect to pay up to
US$500,000 of the final payment in Black Swan shares, priced at the time of
such payment.
The offer is subject to regulatory approval, Black Swan's due diligence
until February 15, 2001, and closing of the transfer of shares for the
purchase of Cobre Sul on March 15, 2001.
South Atlantic has been in possession of these mineral properties since
1993. Percussion drilling and bulk sampling have delineated significant
resources, stated by South Atlantic to be around 23 million cubic metres of
gravel resource in two alluvial flats. The Santo Antonio alluvial diamond
properties are just south of, and nearly contiguous to Black Swan's
concessions along the Paranaiba River. The Santo Antonio region has been host
to a number of important large rough diamond discoveries including the
Presidente Vargas, which at 726.6 carats, is the largest diamond found in
Brazil to date and the 8th largest rough diamond recorded in the world. At
least 12 stones greater than 100 carats have been recovered in this region
including a 351 carat stone found recently by garimperios using manual
techniques. Included in Cobre Sul's assets are a 10 tonne/hour jig plant,
heavy equipment and on site infrastructure including housing and farmland.
Stephen Fabian, President, Black Swan Resources Ltd. states, "This
acquisition is an exceptional opportunity for Black Swan to expand its
exploration and development program in Brazil. The addition of these alluvial
diamond prospects in the Coromandel district compliments Black Swan's strategy
to become a major player in diamond mining in Brazil. Black Swan's existing
local infrastructure and proven positive track record with both federal and
state governmental agencies with regards to licensing and permitting, provides
favourable conditions for these properties to be developed to their greatest
potential." |
