Vancouver – An agreement between Diamonds North Resources (DDN-V) and Kennecott Canada, a Rio Tinto (RTP-N) group company, will see the combination of land holdings in the eastern Arctic of Nunavut.
The Arnak property now consists of 387,000 hectares located immediately south of the Amaruk property, a Diamonds North-BHP-Billiton (BHP-N) joint venture.
It has been a little less than two months since Diamonds North struck a similar deal with BHP (TNM, May 21/04), merging its common area property holdings covering a total of over 28,000 hectares.
The Arnak project will be held 74% by Kennecott and 26% by Diamonds North. Kennecott is also responsible to fund the first $5.5 million in exploration over the next four years, and has committed to spend $1 million in the first year covering a complete airborne geophysical survey and heavy mineral sampling.
Diamonds North’s strategy of striking property pooling deals with majors such as BHP and Rio Tinto has positioned them as one of the larger diamond exploration land holders in northern Canada.
As of the latest figures, Diamonds North has 27.5 million shares outstanding.
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