Talking to myself as usual ... :-)
Another REALLY NICE deal:
Diamonds North and Kennecott merge Nunavut landholdings
Diamonds North Resources Ltd (TSX-V:DDN)
Shares Issued 24,606,527
Last Close 7/12/2004 $0.98
Tuesday July 13 2004 - News Release
Mr. Mark Kolebaba reports
KENNECOTT AND DIAMONDS NORTH JOIN FORCES IN NUNAVUT
Diamonds North Resources Ltd. has reached a joint venture agreement with Kennecott Canada Exploration Inc. to merge landholdings in Nunavut.
The 956,000-acre property, named Arnak (location map: diamondsnorthresources.com, is located immediately south of the Amaruk property -- a joint venture between Diamonds North and BHP Billiton Diamonds Inc. in the eastern Arctic. The Arnak property now includes 616,000 acres of permits acquired by Kennecott, approximately 140,000 acres of claims (subject to a 2-per-cent royalty payable to BHP Billiton Diamonds Inc.) staked at Diamonds North's cost and 200,000 acres of claims acquired at a cost to Kennecott.
Under the terms of the agreement, Kennecott holds 74 per cent and Diamonds North holds 26 per cent of the Arnak property. Kennecott must sole finance the first $5.5-million in exploration costs over the next four years or its entire interest reverts to a 1-per-cent royalty on the 616,000 acres of permits only. Upon Kennecott completing their commitment, Diamonds North will pay its pro rata share of the exploration and development costs.
During the first year of the joint venture, Kennecott has committed to spending a minimum of $1-million on the property. Work will include airborne geophysical coverage of the entire property and heavy mineral sampling.
This transaction is consistent with the company's business strategy of leveraging strategic propertyholdings and providing additional opportunity for shareholders while mitigating the initial financial risk.
Mark Kolebaba, president of Diamonds North, states: "We are pleased with this strategic partnership as it positions Diamonds North as the prime landholder in this rapidly developing diamond region and provides us with the benefit of Kennecott's proven ability to discover diamonds in Canada."
This agreement is subject to acceptance from the TSX Venture Exchange and the Nunavut Mining Recorder awarding Diamonds North 80 per cent or more of the 140,000-acre claim block.
Kennecott Canada Exploration Inc. is a Rio Tinto Group company, which was instrumental in the discovery and development of the Diavik diamond mine in Canada. |
