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Karelian extends agreement with Rio Tinto

By BFN News | 07:50 AM | Thursday 26 June, 2014


Karelian Diamond Resources has signed an amendment letter to extend the existing confidentiality agreement with Rio Tinto Mining and Exploration announced on 22 July 2010 until 30 June 2020. Under 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 Karelian's potential and existing exploration programmes in Finland. In consideration of Rio Tinto disclosing the confidential information to it, 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 the following conditions: 1. For diamond projects the option will be triggered if Karelian completes 10 tons or more of bulk sampling for diamond exploration 2. 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. Story provided by StockMarketWire.com

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