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

To: 1st.mate who wrote (2397)	4/15/2003 9:45:56 AM
From: Gord Bolton	Read Replies (1) \| Respond to of 2402

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. -30- 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 www2.cdn-news.com