Business
Acquisition of Diamond Mining Permit
Acquisition of Diamond Mining Permit.
About this update from Karelian Diamond Resources Plc
[{"type":"text","content":"\n \nKARELIAN DIAMOND RESOURCES\n\n19 April 2016\n\nACQUISITION OF DIAMOND MINING PERMIT OVER THE LAHTOJOKI DIAMOND PROJECT IN FINLAND\n\n\n\nAcquisition of Diamond Mining Permit from A & G Mining Oy\n\n\n\nPurchase Price €150,000 plus a Royalty\n\n\n\nPotential to develop a low strip open pit diamond mine\n\n\n\nLahtojoki is Located in the Kuopio - Kaavi Region of Finland\n\n____________________________________________________________________________\n\nKarelian Diamond Resources plc (“Karelianâ€) (AIM: KDR, ESM: KDRI), is pleased to announce that it has entered into an agreement with A & G Mining Oy (“AGMâ€) to acquire the diamond Mining Permit over the Lahtojoki diamond project in Finland.\n\nThe purchase price is €150,000, comprising an initial purchase price of €50,000 plus a further €100,000 after twenty four (24) months unless Karelian decides not to develop the project. A royalty to AGM of 1% is payable either in diamonds or cash on diamond production up to 2.5 million carats and 2% payable on diamond production above 2.5 million carats.\n\nThe Lahtojoki diamondiferous kimberlite pipe is situated in the Kuopio – Kaavi region of Finland in a highly favourable location with excellent infrastructure including good road access and power distribution and local technical and logistics availability.\n\nThe Company believes that the Lahtojoki diamondiferous kimberlite pipe has the potential to become a profitable low strip ratio open pit diamond mine. It will now review the exploration and feasibility work conducted to date at Lahtojoki and carry out any further studies deemed appropriate.\n\nThe acquisition of the valid Mining Permit over the Lahtojoki project area will allow the Company, should it so decide, and subject to any relevant environmental assessments or requirements, to proceed through to the development of the project.\n\nFinland has a well-developed mining industry and is highly ranked for mining investment attractiveness in the prestigious Fraser Institute rankings for mining jurisdictions worldwide.\n\nThe acquisition has been given legally binding governmental approval by the Finnish Safety and Chemical Agency (“TUKESâ€) of the transfer of the Mining Permit to Karelian.\n\nThis release has been approved by Michael Brennan (MSc., SAIMM), who is a member of the Company's technical staff...