Diamond

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.

Click here to read the full Prima Diamond Corp. (TSXV:PMD) press release.

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