Sounds great Jim.
***NEWS RELEASE***
Diadem Resources Ltd -
Proposals for financing and JV
Diadem Resources Ltd DIR
Shares issued 26,465,005 1998-09-30 close $0.25
Thursday Oct 1 1998
Mr. A.C.A. Howe reports
Del Mar Financial Services Incorporated of California has signed an agreement with the intention to subscribe to a private placement of $3.0-million (U.S.), subject to the approval of the Montreal Exchange and other governing regulatory bodies, at market prices current at the time of the placement. Diadem expects to receive these funds within 60 days and will use these funds to carry out exploration on its various properties. In particular the Leek Springs, California diamond project where previous drilling recovered 247 diamonds (see press release in Stockwatch Aug. 21, 1997) ranging in size from 0.06mm to 0.68mm within an 800 acre crater filled with volcanic breccia designated as an olivine lamproite. Diadem has earned a 40 per cent interest in the property and has the option to spend an additional $3.0-million (U.S.) to earn a 55 per cent interest.
Diadem has also received a firm proposal for a joint venture to develop the La Mestiza gold property in Nicaragua. The Sheridan Platinum Group Ltd. will establish a 50 ton/day mill and will operate the mill to determine the grade, recovery and mining parameters of the known ore zones. Assuming the economics of the project appear feasible for further expansion, SPG will expand the facilities in stages to 500 tons/day. SPG will be entitled to receive back its investment out of first cash flows and thereafter be entitled to 50 per cent of all net cash flows. In addition, Diadem will grant SPG, or its nominee, warrants to purchase 1,000,000 shares of Diadem at 20 cents. This proposal is subject to Montreal Exchange and regulatory approvals, also subject to agreement with Diadem's partners in Nicaragua.
Diadem's consultant's revised summary report dated Dec. 3, 1997 indicates measured resources of 557,732 tonnes at 9.20 g/t, indicated resources of 1,402,100 tonnes at 5.23 g/t and inferred resources of 3,490,000 tonnes at 10.04 g/t at a mill throughput of 500 tonnes per day. He has estimated cash operating costs to be in the range of $170.00 (U.S.) per ounce.
Diadem also has two properties in Quebec containing copper-nickel and zinc deposits, as well as a zinc-lead-silver deposit in Indonesia, all of which require additional drilling.
(c) Copyright 1998 Canjex Publishing Ltd. canada-stockwatch.com
Mr Metals |
