Rhonda Corp - News Release
Rhonda to option Inulik property to Teck Cominco
Rhonda Corp RDM
Shares issued 35,202,318 Jul 31 2002 close $ 0.27
Thursday August 1 2002 News Release
Also Teck Cominco Ltd (TEK) News Release
Mr. Glen Alston of Rhonda reports
TECK COMINCO JOINS RHONDA DIAMOND SEARCH
Rhonda and its wholly owned subsidiary, Rhonda Exploration Inc., have entered into an option/joint venture agreement with Teck Cominco Limited to allow Teck Cominco to earn an initial 51-per-cent interest in Rhonda Exploration's Inulik property adjacent to the Tree claim containing the Knife diamondiferous kimberlite pipe. A 3-per-cent gross overriding royalty will be retained by Rhonda.
Under the terms of the agreement, Teck Cominco will subscribe, by way of a private placement, for $1.5-million of Rhonda units priced at 55 cents, and consisting of one common share and one two-year warrant to purchase a flow-through share at 75 cents. Teck Cominco has the right to participate in future financings of Rhonda to maintain its interest without dilution.
Rhonda has agreed to complete the planned 2002 summer field program for a total cost of $750,000. Teck Cominco will contribute technical expertise and geophysical interpretation to the 2002 program.
Within 60 days of Rhonda completing the 2002 program, Teck Cominco may elect to take up an option to earn a 51-per-cent interest in the property by incurring expenditures of $5-million over four years.
Upon earning a 51-per-cent interest, a joint venture will be formed and Teck Cominco may earn an additional 14-per-cent interest (for a total 65-per-cent interest before dilution) in specific discoveries (kimberlite pipes or deposits of other minerals which have been tested by at least one drill hole) by completing a feasibility study on the discovery area.
Upon earning a 65-per-cent interest in a specific discovery, Teck Cominco may earn an additional 5-per-cent interest in the discovery area (for a total 70-per-cent interest before dilution) by providing notice to Rhonda within 120 days of the delivery of a production plan, that it elects to carry Rhonda to production.
Upon exercising the option, and while Teck Cominco is solely financing the exploration, Teck Cominco will have the direction and control of the exploration programs, and Rhonda will manage such programs as approved by Teck Cominco.
The parties will be entitled to take the product in kind and have rights to market their share, however Rhonda will give Teck Cominco the right to market any base metals or base metal concentrates.
Teck Cominco is the continuing company resulting from the merger in 2001 of Teck Corporation and Cominco Ltd., the two oldest, continuously operating mining companies in Canada with 2001 revenues of $2.379-billion.
Teck Cominco is a world leader in the production of zinc and has significant production of copper, gold and coal. This agreement marks its first significant diamond exploration partnership in Canada with a direct focus in Nunavut. |
