An exploration program aimed at searching for diamonds in Canada’s Northwest Territories is the first to be undertaken by DiamondWorks (DMW-V) in North America.
The company can earn up to a 70% interest in a land package from a private company by completing a bankable feasibility study on future development options.
DiamondWorks Chairman Eric Friedland says the first-phase program will consist of an airborne magnetic survey over four large blocks of ground. He notes that earlier samples of glacial till collected from a wide area by the joint-venture partner revealed high values of indicator minerals.
DiamondWorks is currently exploring for diamonds in Angola and Sierra Leone.
The company is not proceeding with the acquisition of privately held China Diamond, whose assets include a 50% controlling interest in the Changma diamond mine, as well as a 3,100-sq.-km exploration land package in the Chinese province of Shandong.
The deal was terminated when China Diamond failed to win shareholder approval for extending the transaction’s deadline.
DiamondWorks had sought an extension conditional on the government of China’s issuance of the necessary mining permits and exploration licences.
In other news, DiamondWorks has arranged a brokered $30-million private placement of 15 million special warrants priced at $2 each.
The special warrants will be exercisable for units comprising one common share and one share purchase warrant. Each share purchase warrant will entitle the holder to buy one additional common share at $2 for a period of one year.
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