DIAMOND PAGE — Lexam arranges financing for Greenland diamond exploration

Lexam Explorations (LEX-M) has reached an agreement with brokerage firm Canaccord Capital to raise $2.5 million through a special warrant financing.

The financing will consist of 2.5 million special warrants priced at $1 each. The special warrants will be exchangeable for a unit consisting of one share and one half of a share purchase warrant. One whole warrant will entitle the holder to purchase an additional share at $1.20 for a one-year period.

The net proceeds will be used, in part, for diamond exploration in Greenland. Lexam is participating in a joint venture with Platinova (PAS-T) to explore two mineral concessions covering an area of 3,390 sq. km. The concessions extend northward some 400 km from the capital, Nuuk, along the west coast of Greenland. Lexam can earn a 50% interest either by completing 10,000 metres of drilling or extracting a 1,000-ton bulk sample from a kimberlite pipe.

A number of kimberlite dykes are known to occur on the concessions. One such dyke, referred to as MK01, yielded 16 macrodiamonds (stones which exceed 0.5 mm in size in at least one dimension) and 25 microdiamonds from a 792-kg sample, collected from material exposed on surface and traced over a length of 2.5 km. Thirty-eight of the stones are described as white in color and transparent.

The MK01 dyke varies in width up to 2 metres.

A detailed airborne geophysical survey identified 10 magnetic anomalies in the immediate area of MK01. The anomalies are said to be circular and lie beneath small lakes. Follow-up glacial till sampling confirmed that five of the anomalies have coinciding indicator mineral signatures. These five targets are within 1 km of the coast.

Platinova is gearing up to begin drilling later this month. The drilling operations will be supported by an ocean-going barge.

Platinova will test a number of high priority targets outlined on its own 100%-held ground, as well as the five priority targets on the Lexam option property.