FOR: CANABRAVA DIAMOND CORPORATION
TSX VENTURE SYMBOL: CNB
APRIL 15, 2003 - 09:30 EST
Canabrava Signs Agreement With Inco
VANCOUVER, BRITISH COLUMBIA--Canabrava Diamond Corporation
(CNB-TSXV) announced today that it has executed an agreement with
Inco Limited whereby Canabrava will acquire from Inco proprietary
analogue geophysical data over the Winisk Project area in
northwestern Ontario. The data set will also include certain of
Inco's ground geophysical surveys, geological and geochemical
data, including drilling records, within the Winisk Project area.
Canabrava will digitize the analogue geophysical data using a
recently developed technique and will combine the digitized data
with publicly available exploration data and a proprietary
Quaternary geology map to create a comprehensive geographical
information system (GIS) database for the Winisk Project area.
This GIS database will be used to develop an exploration program
for the location of diamondiferous kimberlites within the Winisk
Project area.
Under the terms of the agreement with Inco, Canabrava will
prepare the database within the first year of the agreement. In
addition, Canabrava will now issue 250,000 common shares of
Canabrava to Inco, and can earn the right to permanently use and
retain the data by spending $1 million over four years on
selection and follow-up of geophysical targets and/or on the
acquisition and exploration of mineral properties located within
a defined area of interest. Canabrava will be the operator of the
exploration programs and Inco will have the right to purchase any
nickel-copper-PGM concentrates produced from any mineral
properties Canabrava acquires within the defined area of
interest.
Inco will also have the right to (a) elect to acquire 50% of
Canabrava's interest in any such mineral property by funding
twice Canabrava's property expenditures, including anomaly
selection, property acquisition and exploration costs; or (b)
receive a royalty on products produced from each acquired
property. If Inco elects to acquire an interest in such mineral
property, then either party will have the option, by mutual
consent, to increase its equity by 10% in any joint-ventured
property by funding 100% of a feasibility study and by a further
10% by providing all of the funds required to place a deposit
into commercial production.
Canabrava and Inco are not related parties and all shares to be
issued under the agreement to Inco will be subject to a 12-month
hold period. No finders' fee will be paid regarding the
agreement, which is subject to regulatory acceptance and certain
other customary closing conditions.
Canabrava Diamond Corporation is actively exploring for diamonds
in Canada and Brazil both independently and through major joint
ventures with Diamonds North Resources Ltd., Kennecott Canada
Exploration Inc., Majescor Resources Inc., Navigator Exploration
Corp., and Paramount Ventures and Finance Inc. The Company is
33.7% owned by Southwestern Resources Corp.
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FOR FURTHER INFORMATION PLEASE CONTACT:
Canabrava Diamond Corporation
George H. Read
President & CEO
(604) 669-2525
(604) 688-5175 (FAX)
or
Canabrava Diamond Corporation
Thomas W. Beattie
V.P. Corporate Development
(604) 669-2525
(604) 688-5175 (FAX)
Email: info@canabrava.ca
Website: www.canabrava.com
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release
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