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

To: 1st.mate who wrote (742)	3/15/1999 9:33:00 AM
From: Red Hill	Respond to of 2402

Canabrava and Paramount sign letter agreement with Kennecott Canabrava Diamond Corp CNB Shares issued 28,233,887 Mar 12 close $1.10 Mon 15 Mar 99 News Release Also Paramount Ventures & Finance Inc (PVF) Mr. Rory Moore reports Canabrava Diamond and Paramount Ventures & Finance Inc. have signed a major option/joint venture letter agreement with Kennecott Canada Exploration Inc. to explore the company's Ontario properties for diamonds. The Ontario project will include Canabrava's 100-per-cent-owned Whitefish Lake project, as well as the KAP and Rocky Island Lake projects which are owned 50 per cent by Canabrava and 50 per cent by Paramount. These projects are northeast of Wawa, Ont. and include more than 200,000 hectares of staked and leased lands. Kennecott will have the exclusive right to acquire a 60 per cent interest on all of the Canabrava and Canabrava/Paramount properties by spending $25-million within seven years, or by advancing the project to a decision to begin development and construction of a mine, whichever occurs first. Kennecott must also commit to a minimum exploration expenditure totalling $1.5-million within 18 months of executing the option agreement. Once Kennecott has earned its 60 per cent interest, the parties will form a joint venture and finance continuing exploration/development programs on a pro rata basis. Kennecott will be the operator. The terms outlined in the letter agreement are subject to the completion of a formal option agreement, and management and regulatory approvals. Canabrava and Paramount have been exploring for diamonds in this area for two years, and the programs to date have been successful in defining numerous target areas permissive for the discovery of diamondiferous kimberlites. The companies are extremely pleased to have Kennecott join this exciting project. Kennecott brings extensive experience and an enviable record of success in diamond exploration to the project. (c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com