Shear and Empire waive first right of refusal

Vancouver — BHP Billiton Diamonds, a subsidiary of BHP Billiton (BHP-N) will move ahead with the purchase of a 14% stake in the Churchill Diamond project in Nunavut.

Shear Minerals (SRM-V) and Northern Empire Minerals (NRM-V) NEM) both waived their respective first right of refusal over the sale of Hunter Exploration Group’s interest in the project. In return, BHP Billiton has agreed not to acquire or take control of the two juniors for a period of four years. The major also agreed to pay the cost of collecting and processing the first 200 tonnes of kimberlite bulk samples taken from the area. BHP Billiton agreed to pick up the stake by paying privately-held Hunter $3 million.

The Churchill project lies in the Kivalliq region of Nunavut. A $2.5 million budget has been approved for 2003.

Shear holds a vested 51% interest and is the operator of the project, while Northern Empire is earning a 35% stake by spending $750,000 on exploration.

Shear just completed a $2.1 million financing comprised of 4.23 million units priced at $0.50 per each. A unit holds one share and one half warrant. A whole warrant allows the subscriber to purchase an additional share at $0.75 for one year. Insiders picked up 281,000 units, or 6.6% of the offering.