Business
Extension of Agreement with Rio Tinto
Extension of Agreement with Rio Tinto.
About this update from Karelian Diamond Resources Plc
[{"type":"text","content":"\n \n \n 26 June 2014\n\n CONFIDENTIALITY AGREEMENT WITH RIO TINTO MINING \n\n AND EXPLORATION LIMITED EXTENDED TO 2020 \n\n * Amendment Letter Signed with Rio Tinto to Extend Confidentiality Agreement \n (with Back in Rights)\n \n * Under the Confidentiality Agreement Confidential Information and Geological\n Samples may be Made Available to Karelian by Rio Tinto\n \n * 51 per cent. Back in Agreement with Rio Tinto for any Major Diamond or \n Other Mineral Discovery in Finland\n \n__________________________________________________________________________________\n\nKarelian Diamond Resources plc (\"Karelian\") (AIM:KDR, ESM: KDR.I), the diamond\nexploration company focussed on the Karelian Craton in Finland, is pleased to\nannounce that it has signed an amendment letter to extend the existing\nConfidentiality Agreement (with Back in Rights), as announced on 22 July 2010,\nwith Rio Tinto Mining and Exploration Limited (\"Rio Tinto\") until 30 June 2020.\n\nUnder the Confidentiality Agreement, Rio Tinto may disclose to Karelian\nconfidential information and physical geological samples relating to\nexploration in Finland for the purpose of Karelian considering that information\nin relation to Karelian's potential and existing exploration programmes in\nFinland.\n\nIn consideration of Rio Tinto disclosing the confidential information to it,\nKarelian has agreed that Rio Tinto will have the option (exercisable at its\ndiscretion) to earn a 51 per cent interest in any project identified by\nKarelian in Finland by Rio Tinto paying the direct cash expenditures incurred\nin developing the project subject to the following conditions:\n\n 1. For diamond projects the option will be triggered if Karelian completes 10\n tons or more of bulk sampling for diamond exploration; and\n \n 2. For all other minerals the option will be triggered if Karelian discovers a\n resource with an in situ value that is equal to or greater than 3 million\n ounces of gold in a JORC compliant resource calculation.\n \nThe Karelian Craton, which is the focus of Karelian's exploration programme in\nFinland extends across Finland and northwest Russia and is comparable in size\nto the diamond rich Slave Lake Craton in Canada. Two world class diamond\ndeposits, Lomonosova and the Grib Pipe, have been discovered in the Russian\nsector of the Karelian Craton and the Rus...