Business
Karelian signs agreement with Rio Tinto Mining
Karelian signs agreement with Rio Tinto Mining.
About this update from Karelian Diamond Resources Plc
[{"type":"text","content":"\n \n \n 22 July 2010\n\n KARELIAN DIAMOND RESOURCES PLC \n\nAGREEMENT WITH RIO TINTO MINING AND EXPLORATION LIMITED IN RELATION TO FINLAND \n EXPLORATION DATA \n\n * Agreement signed with Rio Tinto\n \n * Confidential information and geological samples will also be made available\n by Rio Tinto\n \n * 51 per cent. back in agreement with Rio Tinto for any major diamond or\n other mineral discovery\n \nKarelian Diamond Resources plc (\"Karelian\") (AIM:KDR, ESM: KDR), is pleased to\nannounce that it has concluded a Confidentiality Agreement (with Back in\nRights) with Rio Tinto Mining and Exploration Limited (\"Rio Tinto\"). Under the\nagreement, Rio Tinto will disclose to Karelian confidential information and\nphysical geological samples relating to exploration in Finland for the purpose\nof Karelian considering that information in relation to Karelian's potential\nand existing exploration programmes in Finland.\n\nIn consideration of Rio Tinto disclosing the confidential information to it,\nKarelian has agreed that Rio Tinto will have the option to earn a 51 per cent.\ninterest in any project identified by Karelian in Finland by Rio Tinto paying\nthe direct cash expenditures incurred in developing the project subject to the\nfollowing 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 the in situ\n value of 3 million ounces of gold in a JORC compliant resource calculation.\n \nThe Rio Tinto Group is one of the largest mining companies in the world with\ninterests spanning aluminium, copper, diamonds, iron ore, coal, uranium, gold\nand industrial minerals. Rio Tinto Diamonds is the third largest supplier of\ndiamonds in the world with diamond production ranging from the unique pink\ndiamonds of the Argyle mine in Australia to the spectacular whites of Diavik's\nhigh value gemstones in Canada.\n\nKarelian Chairman Professor Richard Conroy said:\n\n\"I am delighted with the Agreement with Rio Tinto. The confidential information\nand physical samples now being made available to Karelian will be a significant\naddition to Karelian's existing knowledge base and mineral exploration\npr...