SASKATOON, July 24 /CNW/ - Shore Gold Inc. (SGF:TSX) ("Shore") and Diamondex Resources Ltd. (DSP-TSX.V) ("Diamondex") are pleased to announce that they have completed the acquisition of the interest of Ashton Diamonds (Canada) Inc. and Ashton Mining of Canada Inc. (collectively, "Ashton") (both now wholly owned subsidiaries of Stornoway Diamond Corporation) in the Buffalo Hills Project located in north central Alberta for a total consideration of $17.5 Million (see April 26, 2007 news release). Under the agreement Shore paid $8.75 Million in cash and Diamondex paid $6.25 Million in cash and issued Ashton 6,031,363 of its common shares with a value of $2.5 Million which are subject to a four month hold trading restriction expiring on November 21, 2007.
Pursuant to the acquisition, Shore and Diamondex each acquired a 22.5% interest in the Buffalo Hills Joint Venture, in which Encana Corporation holds a 43% interest and Pure Diamonds Exploration Inc. holds the remaining 12% interest. Shore and Diamondex have the option to increase their combined interest to 72.5% by funding the next $15 million of exploration expenditures before April 30, 2010. Diamondex has been appointed Operator of the Buffalo Hills Joint Venture.
Following a review of all geological data by a technical team from Shore and Diamondex, an exploration program and budget will be announced.
SHORE GOLD INC. DIAMONDEX RESOURCES LTD.
"Harvey J. Bay" "Randy C. Turner"
Harvey J. Bay Randy C. Turner
COO and CFO President and CEO
Shore Gold Inc. Diamondex Resources Ltd.