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Gold/Mining/Energy : Canabrava Diamond -- Ignore unavailable to you. Want to Upgrade?

To: Flea who wrote (2285)	7/25/2001 1:14:43 AM
From: Flea	Read Replies (1) \| Respond to of 2402

Canabrava/Paramount amends Ontario option agreement Canabrava Diamond Corp CNB Shares issued 38,070,506 Jul 24 close $0.20 Tue 24 Jul 2001 News Release Also Paramount Ventures & Finance Inc (PVF) Dr. Rory Moore reports The option agreement of Canabrava Diamond Corporation and Paramount Ventures & Finance with Kennecott Canada Exploration Inc., entered into in 1999, has been amended effective July 1, 2001. The principal points of the amendment are: (a) the revised area of interest will include the Rocky Island Lake project and the Pivot Lake claims; and (b) Canabrava will assume the role of project operator with immediate effect. Canabrava has already launched an aggressive summer exploration program. Under the terms of the amendment, each party will be free to engage in exploration outside the revised area of interest without obligation to the other party. However, any land within the original area of interest acquired by Kennecott or Canabrava before June 30, 2003, will be subject to a 1.5-per-cent gross overriding royalty payable to the other party. The royalty is capped at $10-million. Canabrava's share of this royalty will be divided with Paramount according to each party's equity interest in the project. Currently Canabrava and Paramount each hold a 50-per-cent interest in the revised area of interest which covers over 11,500 square kilometres and includes over 40,000 hectares of staked mineral claims. The acquisition of these new claims was completed in the spring of 2001 following the compilation of previous sampling data and an evaluation of the geochemistry of recovered kimberlite indicator minerals. In addition to the $800,000 already spent this year by Kennecott on the project, Kennecott has committed to provide a further $350,000 of financing for the remainder of 2001. Canabrava and Paramount will contribute an additional $500,000 (split 50/50) for a combined total budget of $850,000 to be spent in the revised project area before year-end. In addition, Kennecott has committed to provide a minimum of $500,000 in 2002, in order to test at least 10 targets by drilling or trenching (subject to such targets being developed for testing). However, in order to compensate for the financing provided by Canabrava and Paramount in 2001, the first $500,000 provided by Kennecott in 2002 will not be applied to its earn-in commitment of the Ontario option agreement. Upon $500,000 being spent in 2002, Kennecott may elect to recommence as operator under the existing terms of the Ontario option agreement, which are that Kennecott has the option to earn a 60-per-cent interest in the project by spending $25-million before June 10, 2006, or by advancing the project to a production decision, whichever occurs first. To date, Kennecott has spent over $2.5-million toward its earn-in. Canabrava's president, Dr. Rory O. Moore, stated that that he is very pleased with the arrangement reached with Kennecott, since "it provides Canabrava the opportunity to aggressively pursue a discovery within the highest potential area identified on this project to date. The excellent infrastructure of the project area ensures lower exploration costs, which will enable a very significant program to be completed with the approved budget of $850,000 for the next six months Canabrava's teams are highly motivated and already in the field conducting the first phase of a planned four-phase summer/fall exploration program which will consist of a combination of prospecting, mapping, till sampling, airborne geophysics and possibly drilling." (c) Copyright 2001 Canjex Publishing Ltd. stockwatch.com