Diamond hunters Ashton Mining of Canada (ACA-T) and Pure Gold Resources (PUG-T) have signed a $5.5-million option agreement with an Alberta energy firm to earn interests in diamond properties in the prairie province.
To earn a 15% interest in the proposed joint venture, Pure Gold will finance the first $500,000 in exploration funding. Ashton, the operator, has the option of funding the remaining $5 million and thereby earn a 42.5% interest.
The Alberta company will hold the remaining 42.5%.
Wayne Hillier, Ashton’s vice-president of exploration, says the Alberta firm wishes to remain anonymous until the deal is made final; the location of the properties is also being kept secret until such time.
“We should have most of the ground tied up in the next two weeks [by mid-November],” Hillier says.
The Alberta firm was probing the area for oil, not minerals, when it discovered the kimberlite anomalies.
Under the agreement, after Ashton and Pure Gold have spent a total of $5.5 million on the properties, the three parties will participate in further exploration on a pro rata basis.
Surveying will begin this month, with drilling slated for early 1997.
Ashton Mining of Canada is 62%-owned by Ashton Mining of Australia.
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