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Joint News Release - Shore Gold and Diamondex to buy interst in Buffalo Hills project for $17.5 million
Joint News Release - Shore Gold and Diamondex to buy interst in Buffalo Hills project for $17.5 million.
About this update from Canterra Minerals Corporation
[{"type":"text","content":"\n\n\n\nTSX: SGF\n\n\nCALGARY, April 26 /CNW/ - Shore Gold Inc. (SGF:TSX) ("Shore") and\nDiamondex Resources Ltd. (DSP-TSX.V) ("Diamondex") are pleased to announce\nthat they have entered into an agreement with Ashton Mining of Canada Inc.\n("Ashton") (a wholly owned subsidiary of Stornoway Diamond Corporation) under\nwhich Shore and Diamondex have agreed to purchase Ashton's interest in the\nBuffalo Hills property in north central Alberta for a total consideration of\n$17.5 million. The agreement provides that Shore and Diamondex will pay $8.75\nmillion and $6.25 million respectively in cash, and Diamondex will pay a\nfurther $2.5 million in the form of common shares of Diamondex.\n\n\nThe Buffalo Hills Project is presently a joint venture with Ashton\nDiamonds (Canada) Inc., (a wholly owned subsidiary of Ashton), EnCana\nCorporation and Pure Diamonds Exploration Inc. To date, the joint venture has\nspent in excess of $30 million on exploration including geophysics, drilling\nand mini-bulk sampling. Under the terms of this agreement, Shore and Diamondex\nhave the right to acquire Ashton's approximate 45 percent interest in the\nproject on a 50/50 basis, and have the option to increase their collective pro\nrata interest to 72.5 percent by funding the next $15 million of exploration\nexpenditures before April 30, 2010.\n\n\nThe closing of the sale is subject to a number of conditions, including:\n\n\n(a) satisfactory completion of due diligence by Diamondex and Shore;\n(b) the execution of a formal purchase and sale agreement; and\n(c) receipt of all necessary regulatory approvals and third party\n consents.\n\n\nThe transaction is also subject to a 30-day right of first refusal\n("ROFR") of the two other joint venture partners with Pure Diamonds\nExploration Inc. already having waived its ROFR. Upon closing, Diamondex will\nassume operatorship of the project.\n\n\nThe Buffalo Hills Project area is the third largest known district of\nsignificantly diamond-bearing kimberlites in Canada after Lac de Gras in the\nNorthwest Territories and Fort a la Corne in Saskatchewan. To date, a total of\n38 kimberlites have been discovered in the region, 26 of which are\ndiamondiferous. These known kimberlite pipes range up to 47 hectares in\nsurface area. Samples larger than ten tonnes have been collect...