Canabrava Options Property In Ontario
VANCOUVER, BRITISH COLUMBIA--Canabrava Diamond Corporation
(CNB-CDNX) announces that it has signed a letter agreement with
Elizabeth J. Kirkwood, owner of 34 claims in the Porcupine Mining
Division, Ontario.
Under the terms of the agreement, Canabrava can earn a 100%
interest in the Property by making cash payments of $100,000 and
issuing 100,000 shares to Kirkwood over a three-year period. Upon
Canabrava earning a 100% interest in the Property, Kirkwood is
entitled to a 2% gross overriding royalty on production. Canabrava
has the right to purchase one percentage point of the royalty for
$1.0 million. Kirkwood will retain the remaining 1.0% royalty,
provided that Canabrava will have a right of first refusal if
Kirkwood sells or disposes of the royalty. The Property is within
the area of interest of the Ontario Joint Venture with Kennecott
Canada Exploration Inc.
No finder's fee will be paid regarding the agreement, which is
subject to regulatory approval, and Kirkwood and Canabrava are not
related parties.
Canabrava Diamond Corporation is actively exploring for diamonds
in Brazil and Canada both independently and through major joint
ventures with Kennecott Canada Exploration Inc., Navigator
Exploration Corp., and Paramount Ventures and Finance Inc. The
Company is 45.6% owned by Southwestern Resources Corp. (SWG-T).
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Canabrava Diamond Corporation
Rory O. Moore
President
(604) 669-2525
(604) 688-5175 (FAX)
Website: www.canabrava.ca
Email: info@canabrava.ca
or
Canabrava Diamond Corporation
George H. Read
Vice President, Exploration
(604) 669-2525
The Canadian Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release. |
