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LONDON (Alliance News) - Karelian Resources PLC said Thursday it has extended its confidentiality agreement with Rio Tinto Mining and Exploration to June 30, 2020.
The diamond exploration company, which is focused on the Karelian Craton in Finland, said it has signed an amendment letter to extend the existing Confidentiality Agreement (with Back in Rights) with Rio Tinto PLC's Rio Tinto Mining and Exploration, which was originally announced on July 22, 2010.
Under the terms of the agreement, Rio Tinto may disclose to Karelian confidential information and physical geological samples relating to exploration in Finland for the purpose of Karelian considering that information in relation to its potential and existing exploration programmes in Finland, said the company.
As Rio Tinto has agreed to disclose confidential information, Karelian has agreed that Rio Tinto will have the option, exercisable at its discretion, to earn a 51% interest in any project identified by
Karelian in Finland by Rio Tinto paying the direct cash expenditures incurred in developing the project subject to a number of conditions. For diamond projects the option will be triggered if Karelian completes 10 tonnes or more of bulk sampling for diamond exploration; and for all other minerals the option will be triggered if Karelian discovers a resource with an in situ value that is equal to or greater than 3 million ounces of gold in a JORC compliant resource calculation.
"This has been a very positive relationship in which the confidential information and physical samples made available to Karelian have been a majoraddition to Karelian's existing knowledge base and mineral exploration programme and to its objective of making a major diamond discovery
in the Finnish sector of the Karelian Cratoncomparable to the world class discoveries made on the Russian side," said Karelian Diamond Chairman Professor Richard Conroy.
Shares in Karelian Diamond were trading 2.86% higher at 1.8 pence per share shortly after the market open Thursday. Rio Tinto shares were 1.44% higher at 3,142 pence per share.
By Alice Attwood; aliceattwood@alliancenews.com; @AliceAtAlliance
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