75% of Luiza diamond concessions to be acquired
Starpoint Goldfields Inc STS
Shares issued 6,444,175 Jun 6 close $0.22
Mon 9 Jun 97 News Release
Mr Harry Bristman reports
An option agreement has been signed with Mr Albert Y. Djemba of the
Democratic Republic of the Congo to acquire 75% of the diamond concessions
in the zone of Luiza, a subregion of the Lulua region of Kasai Occidental
(West-Kasai) in the Democratic Republic of the Congo. The properties cover
approximately 500 sq km. The alluvial diamonds in this region, the West
Kasai, are known for their high gem quality. The source of the diamonds is
in the river systems of the Cassai River and its tributaries. This area has
a history of diamond mining by the local people. In addition to diamonds,
the region is also known for its gold deposits. The properties of the Luiza
zone are approximately 100km north of the alluvial diamond concessions in
the Lunda Norte Province of Angola.
The option agreement provides the company the right to acquire 75% of the
undivided interest in the concessions. Starpoint agrees to pay the optionor
the sum of $250,000 upon signing the agreement. In addition, upon
commencement of commercial production Starpoint agrees to pay the optionor
1,000,000 shares, a further 1,000,000 shares subject to establishing an
indicated resource of not less than 400,000 mineable carats or equivalent
value in any type of mineral resource or product, and thereafter for each
additional 400,000 carats (or equivalent value any type of mineral resource
or product) issue a further 1,000,000 shares up to a maximum of 5,000,000
shares. In addition, Starpoint Goldfields will pay US$5 million after
US$50,000,000 in gross revenues has been earned or attributed to the
concessions. The company will retain 75% of the gross revenue upon
production and 75% of the remaining 25% of gross revenue until capital
expenses have been recovered. A government royalty of 2.5% shall be paid on
production from the properties.
A detailed examination of the property by Starpoint's geologists and
engineers is expected to begin shortly. Upon receiving a favourable report,
the company plans an aggressive work program.
(c) Copyright 1997 Canjex Publishing Ltd. canada-stockwatch.com
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How safe is the Republic of Congo? Didn't this place just went through war and change its name?
Dorothy |
