Karelian Share News (KDR)

LONDON (Dow Jones)--Irish diamond explorer Karelian Diamond Resources PLC (KDR.LN) Thursday said Rio Tinto PLC (RIO.LN) has agreed to supply it with secret exploration data about Finland in exchange for an option to take a 51% stake in any discovery Karelian makes there. Dublin-based Karelian said it signed a confidentiality agreement with the mining giant which gives it access to Rio Tinto's data and geological samples from Finland. If it makes a diamond discovery or discovers any other minerals, Rio Tinto has an option to take a majority stake in the project and has agreed to fund any projects development. The option is triggered if Karelian completes 10 metric tons or more of bulk sampling for diamonds or, if it is another mineral, if it discovers a resource worth the equivalent of at least 3 million ounces of gold. Karelian Chairman Richard Conroy said Karelian's objective remains making a significant diamond discovery in Finland comparable to similar finds over the border in Russia. -By Jason Douglas, Dow Jones Newswires; 44-20-7842-9272; jason.douglas@dowjones.com (END) Dow Jones Newswires July 22, 2010 02:48 ET (06:48 GMT)