Canadian firm Star Diamond has agreed to accumulate the remaining 50% curiosity within the Buffalo Hills Diamond Mission in north-central Alberta from Canterra Minerals.
As consideration, Star Diamond will challenge 17.5 million frequent shares, valuing the transaction at $1.1m.
One half of the consideration shares can be topic to a 12-month lock-up association.
Along with the consideration shares, Canterra will obtain a 1% royalty curiosity within the venture.
The deal’s completion is topic to customary closing circumstances together with approval from the TSX. All the consideration shares can be topic to a customary four-month holding interval.
Upon completion of the deal, Star Diamond will maintain 100% of the venture.
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Positioned round 400km north-west of Edmonton, Alberta, the Buffalo Hills Diamond Mission encompasses 21 mineral leases spanning 4,800 hectares.
It represents a notable and accessible space of diamond-bearing kimberlites, sharing similarities with the Fort á la Corne kimberlites in Saskatchewan, Canada.
The corporate acknowledged that the venture is located within the Buffalo Hills Kimberlite District, which hosts a minimal of 38 particular person kimberlite our bodies. Amongst these, 26 kimberlites include diamonds, with a number of of them uncovered on the floor.
Exploration of those kimberlites commenced in 1996, with small parcels of diamonds collected from varied exploration programmes specializing in essentially the most promising websites.
Star Diamond president and CEO Ewan Mason stated: “We’re excited to realize management of the 50% of Buffalo Hills Diamond Mission we didn’t personal. In early 2023, we dusted off the file on this property and performed an examination of the present diamond parcel that was collected from a bulk pattern beforehand taken in 2010.
“Our diamond specialist completely analysed the diamonds and we had been astonished to seek out not solely anomalous ranges of Kind IIa diamonds within the pattern but in addition a presence of fancy yellow diamonds (K6 yellow diamonds) with elevated modelled diamond costs.
“It grew to become clear to us that additional work wanted to be carried out and with quite a few pipes at floor we consider {that a} bigger bulk pattern must be taken to find out how lots of the 38 pipes on the property could also be financial.”
Canterra Minerals president and CEO Chris Pennimpede stated: “We’re assured that Star Diamond will be capable to maximise the worth of the Buffalo Hills Diamond Mission as a devoted diamond explorer with complementary belongings within the area.
“Canterra is now targeted on superior stage copper and gold exploration within the central Newfoundland Mining District and appears ahead to sustaining its publicity to the venture as a Star Diamond shareholder.”