Canabrava options Ontario property from Falconbridge
Canabrava Diamond Corp
CNB
Shares issued 43,883,506
Nov 30 2001 close $.200
Monday Dec 3 2001
News Release
Mr. Rory Moore reports
Canabrava has entered into a letter of intent with Falconbridge Ltd. regarding certain claims owned by
Falconbridge in the Staples and Casselman townships, Ont.
Under the terms of the agreement, Canabrava can earn a 100-per-cent interest in the property by making
cash payments of $10,000 and issuing 100,000 Canabrava common shares to Falconbridge and by
financing $90,000 in exploration expenditures over a three-year period. Upon Canabrava earning a
100-per-cent interest in the property, Falconbridge is entitled to a 2-per-cent gross overriding royalty on
diamond production. Canabrava has the right to purchase one percentage point of the royalty for
$1-million. If Canabrava discovers any mineral other than diamonds on the property then that portion of
the property will revert to Falconbridge, which will have the right to explore and exploit such other
minerals from the reverted portion of the property. If Canabrava exercises its option, Falconbridge will
pay Canabrava a 2-per-cent net smelter royalty on minerals produced from the reverted portion, with
Falconbridge retaining the right to purchase one percentage point of that royalty for $1-million.
No finder's fee will be paid regarding the agreement, which is subject to regulatory approval.
Falconbridge and Canabrava are not related parties and all shares issued under the agreement to
Falconbridge will be subject to a 12-month hold period. |
