Rio Tinto3 Aug 2017 01:03
Agreement with Rio Tinto Mining and Exploration
Your Company has an agreement with Rio Tinto Mining and Exploration (“Rio Tinto”).
Under the agreement, Rio Tinto discloses to Karelian confidential information and physical geological samples related to exploration in Finland for the purpose of the Company considering that information in relation to its potential and existing programmes in Finland.
In consideration of Rio Tinto disclosing the confidential information to it, Karelian has agreed that Rio Tinto will have the option to earn 51 percent interest in any project identified by Karelian in Finland by Rio Tinto paying the direct cash expenditures incurred in developing the project, subject to the following 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 the in situ value of 3 million ounces of gold in a JORC compliant resource calculation.