Texas Star (VSE) has worked out a deal to increase to 25% its interest in a diamond exploration joint venture in Arkansas’ Crater of Diamonds state park. Arkansas granted approval to conduct an exploration program in the park to a joint venture comprising Continental Diamonds, Kennecott, Australian firm Capricorn Diamonds, and investment group Arkansas Diamond Development.
The consortium recently started a US$500,000 program totalling about 6,800 ft. of core drilling in up to 25 holes to test an area known to contain diamonds on surface.
Texas Star plans to buy all of the shares in Continental Diamonds, giving it a one-quarter interest in the project.
Texas Star has already proposed a merger with Diamond Exploration, which owns 30% of Continental Diamonds. It has also agreed to buy Continental Precious Minerals’ (ME) 70% interest in Continental Diamonds in exchange for 250,000 Texas Star shares.
Those two transactions would give Texas Star full ownership of Continental Diamonds.
Ed Godin, president of Continental Precious Metals, said Texas Star and the company are now negotiating the formation of a joint venture to explore for diamonds on a North American scale.
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