Prima Diamond Corp. (TSXV:PMD) announced that it has entered into a property option agreement in order to acquire the Northwest Territories-based Munn Lake diamond property.
Prima Diamond Corp. (TSXV:PMD) announced that it has entered into a property option agreement in order to acquire the Northwest Territories-based Munn Lake diamond property. Currently Munn Lake belongs to DG Resource Management Ltd. and Zimtu Capital Corp. (TSXV:ZC).
Historic exploration highlights for Munn Lake include:
- From 1996 and 2007, SouthernEra Resources Ltd. spent at least $5.7 million* as the operator of the diamond exploration program at Munn Lake
- Diamondiferous ‘Yuryi’ Boulder Field
- 226 diamonds, including 62 macro-diamonds returned from 581 Kg sample
- Boulders up to 25 m in diameter
- Diamondiferous Munn Lake Kimberlite
- 14 diamonds including 2 macro-diamonds and 12 micro-diamonds returned from 42 kg sample
- Drill-indicated total length of 1.3 km
- True thickness between 12 m – 0.25 m
- Four additional Kimberlite Indicator Mineral (KIM) trains on the property, sources yet to be identified
Agreement terms are as follows:
In consideration of the grant of the option, Prima has agreed to pay to DG Resource and Zimtu an aggregate of $50,000 cash and the issuance of 4,500,000 common shares of Prima payable divided equally between the vendors as follows:
- $10,000 upon execution of the Agreement;
- an additional $10,000 upon TSX Venture Exchange (the ‘Exchange’) acceptance;
- issue 2,000,000 common shares upon Exchange acceptance;
- an additional $15,000 within one month of Exchange acceptance;
- an additional $15,000 within six months of Exchange acceptance; and
- issue an additional 2,500,000 common shares one year after the Exchange acceptance.
DG Resource and Zimtu will also retain a 3% Gross Overriding Royalty (‘GORR’) on all diamond production divided equally between the vendors. Prima shall be entitled at any time to purchase 1% GORR for $2,000,000 in respect of all minerals other than diamonds. The Agreement is subject to final acceptance of the Exchange.