Mar 9, 2005
On March 2nd, Dianor Resources Inc. (DOR: TSX Venture Exchange) announced that it entered into an option agreement to acquire a 70% interest in 49 patented mining claims located to the east and south of its Leadbetter Diamond Property. The Leadbetter Extension Property totaling 1,597 acres (646 hectares) located in Chabanel Township, Northern Ontario. The combined Leadbetter Diamond Property and Leadbetter Extension Properties form a single contiguous property of approximately 16 sq. kilometers.
990 diamonds have been recovered from a number of bedrock pits from the original optioning. And Dianor expects that a reconnaissance diamond-drilling program of up to 4,000 metres of NQ core drilling will begin shortly. This initial drilling is aimed at delineating the margins of the diamond-bearing host rocks; the thickness of the host units and obtaining data on their diamond content. The drilling program will outline an area for detailed drilling to define the geometry and the micro-diamond distribution. The diamond-drilling program will be conducted under the supervision of Dr. Winfried Brack, P.Geo.
Quoted from the Press Release: Under the terms of the option agreement, in order to obtain a 70% interest in the Leadbetter Extension Property, Dianor will:
• Issue 1,500,000 common shares to the vendor upon obtaining regulatory approval;
• Make a cash payment of $800,000 to the vendor upon obtaining regulatory approval;
• Make payments in cash and shares in the amount of $3,000,000 over a period of four years;
• Incur exploration expenditures of $5,000,000 before the fourth anniversary of the signing of the option agreement, and
• Pay an additional $5,000,000 to the vendor within eight years of the signing of the option agreement.
The company has the funds for the initial $800,000 payment as a result of recent private placements. The option agreement is subject to regulatory approval. Upon the issuance of the 1,500,000 shares and cash payment of $800,000, Dianor will obtain all relevant data, including sampling results, reports and drill data pertaining to the Leadbetter Extension Property. This data will be reviewed and reported on by Dr. Winfried Brack, P.Geo.