VANCOUVER, Aug. 5, 2014 /CNW/ - Prima Diamond Corp.
(TSX.V:PMD) ("Prima" or the "Company") announces that it has
entered into a property option agreement (the "Agreement") dated
July 25, 2014 to acquire the Munn
Lake Diamond Property located in the Slave Province, Northwest Territories from DG Resource
Management Ltd. ("DG Resource") and Zimtu Capital Corp. ("Zimtu")
whereby Prima can acquire an undivided 100% interest in and to 19
mineral claims covering more than 14,000 ha (34,000 acres).
The Munn Lake Diamond Property is located approximately 35 km
east of the Snap Lake Diamond Mine and 40 km northwest of the
Gahcho Kué Project scheduled to commence diamond production in
2016.
Historic Exploration Highlights
- From 1996 and 2007, SouthernEra Resources Ltd. spent at
least $5.7 million* as the operator
of the diamond exploration program at Munn Lake
- Diamondiferous "Yuryi" Boulder Field**
- 226 diamonds, including 62 macro-diamonds returned from 581
Kg sample
- Boulders up to 25 m in diameter
- Diamondiferous Munn Lake Kimberlite***
- 14 diamonds including 2 macro-diamonds and 12 micro-diamonds
returned from 42 kg sample
- Drill-indicated total length of 1.3 km
- True thickness between 12 m - 0.25 m
- Four additional Kimberlite Indicator Mineral (KIM) trains on
the property, sources yet to be identified
Historic Exploration Details [Link to Property
Map]
The "Yuryi" boulder field, "hosts spectacular pyrope
garnet chemistry with over 40% of the pyropes occurring within the
G-10 field, suggesting that the diamond potential of the
primary kimberlite source is excellent. The 'Yuryi' kimberlite
returned 226 diamonds, including 62 macrodiamonds from 581
kilograms of processed kimberlite. One 0.12 carat diamond was also
recovered from the sample"** (A macrodiamond has 1 dimension
greater than 0.5mm.)
The drill-tested Munn Lake Kimberlite varies in true thickness
from 12m to 0.25m. A 42 kg sample, from two diamond drill
core holes and one sonic drill hole, returned excellent
microdiamond counts with a majority of the diamonds of very good
white color and quality. 14 diamonds were noted, including 2
macrodiamonds and 12 microdiamonds***.
In addition to the indicator train that might be attributed to
the diamondiferous Munn Lake Kimberlite at least four additional
indicator trains with very robust kimberlitic mineral chemistry
have been identified on the property. The sources for these
indicator trains have yet to be been identified. ****
The "North Margaret Lake Indicator Train" is approximately 300m
wide by 7km in length and results suggest the definition of an
up-ice cut-off point to the indicator train. Individual samples
returned up to 159 indicators.****
*Kalahari Resources Inc. AIF, 10/16/2002, page
10
** SouthernEra news release, February 18th, 1999
*** SouthernEra
news release, June 8th,
1999.
**** SouthernEra news release, October 5th, 2000
Terms of the Agreement
In consideration of the grant of the option, Prima has agreed to
pay to DG Resource and Zimtu an aggregate of $50,000 cash and the issuance of 4,500,000 common
shares of Prima payable divided equally between the vendors as
follows:
- $10,000 upon execution of the
Agreement;
- an additional $10,000 upon TSX
Venture Exchange (the "Exchange") acceptance;
- issue 2,000,000 common shares upon Exchange acceptance;
- an additional $15,000 within one
month of Exchange acceptance;
- an additional $15,000 within six
months of Exchange acceptance; and
- issue an additional 2,500,000 common shares one year after the
Exchange acceptance.
DG Resource and Zimtu will also retain a 3% Gross Overriding
Royalty ("GORR") on all diamond production divided equally between
the vendors. Prima shall be entitled at any time to purchase 1%
GORR for $2,000,000 in respect of all
minerals other than diamonds. The Agreement is subject to final
acceptance of the Exchange.
Non-Brokered Private Placement
Prima has arranged a non-brokered private placement financing of
up to 8,333,333 Units ("Units") of the Company at a price of
$0.06 per Unit for gross proceeds of
$500,000. Each Unit will consist of
one common share in the capital of the Company and one-half of one
common purchase share warrant (each full warrant, a "Warrant").
Each whole Warrant will be exercisable into one common share at
$0.10 for a period of 24 months from
closing.
The Company also announces a non-brokered private placement
financing of up to 6,250,000 Flow Through Units ("FT Units") of the
Company at a price of $0.08 per FT
Unit for gross proceeds of $500,000. Each FT Unit will consist of one
common share issued on a flow-through basis within the meaning of
the Income Tax Act (Canada)
and one-half of one Warrant exercisable at $0.10 into one common share for a period of 24
months from closing.
Proceeds of the private placements will be used to conduct
exploration on the Company's Munn Lake Diamond Property, Godspeed
Lake Diamond Property and the Liard Fluorspar Property and for
general working capital.
Finders frees may be payable by the Company on a portion of the
offering in accordance with the Exchange policies and
guidelines.
All of the securities issued under this offering will be subject
to a hold period expiring four months from closing.
Appointment of Board Member and New Chief Financial
Officer
Prima is pleased to announce the appointment of Andrew Davidson to the Board of Directors and as
Chair of the Audit Committee. Effective July
30, 2014, Mr. Davidson has resigned his position as Chief
Financial Officer and Ms. Jody
Bellefleur has agreed to accept the position as Prima
CFO.
Andrew Davidson is a Chartered
Accountant with extensive experience in Canadian and international
financial reporting standards. He has years of experience in public
practice accounting focusing specifically on publicly listed
enterprises. Mr. Davidson is the CFO of 49 North Resources Inc., a
Canadian resource investment company and currently sits as a
director for Gespeg Copper, Kapuskasing Gold Corp, Westcore Energy
and Omineca Mining and Metals.
Jody Bellefleur has been Chief
Financial Officer of Zimtu Capital Corp. since June, 2013 and has
been with the Zimtu Group since 2008. She will be responsible for
all regulatory financial reporting including preparation of
quarterly financial statements and management discussion and
analysis. Ms. Bellefleur is a CGA with over 15 years' experience as
a corporate accountant and has been a Member of the Certified
General Accountants Association of British Columbia since 1998.
About Prima
Prima is focused on diamond exploration in the Slave Craton,
Northwest Territories, Canada,
which is host to the Daivik, Ekati, and Snap Lake diamond mines.
The Prima diamond properties are situated immediately to the south
and 40 km to the north of Gahcho Kué projected to commence diamond
production in 2016.
NI 43-101 Disclosure
The technical information above has been prepared in accordance
with the Canadian regulatory requirements set out in National
Instrument 43-101 and reviewed on behalf of the Company by
Neil McCallum, P.Geo., a qualified
person, of Dahrouge Geological Consulting Ltd.
ON BEHALF OF THE BOARD
PRIMA DIAMOND CORP.
"Robert Bick"
Robert
Bick
President and CEO
Tel: 604.681.1568
rbick@primadiamondcorp.com
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Disclaimer for Forward-Looking Statements
Certain statements in this release are forward-looking
statements, which reflect the expectations of management regarding
the matters contemplated herein. Forward-looking statements consist
of statements that are not purely historical, including any
statements regarding beliefs, plans, expectations or intentions
regarding the future. Such statements are subject to risks and
uncertainties that may cause actual results, performance or
developments to differ materially from those contained in the
statements. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if
they do occur, what benefits the Company will obtain from them.
These forward-looking statements reflect management's current views
and are based on certain expectations, estimates and assumptions
which may prove to be incorrect. Forward-looking information in
this press release includes, but is not limited to, statements
regarding the Company's intention to complete to complete the Munn
Lake Diamond Property acquisition, the non-brokered private
placement financing, the proposed use of proceeds, the payment of
finder's fees and the projected commencement of production of
surrounding mines. A number of risks and uncertainties could cause
our actual results to differ materially from those expressed or
implied by the forward-looking statements, including the inability
to obtain Exchange approval of the Agreement and the private
placement. In addition, commercial discoveries on properties nearby
are not necessarily an indication of commercial mineral resources
being on property we can option. These forward-looking statements
are made as of the date of this news release and, except as
required by law, the Company assumes no obligation to update these
forward-looking statements, or to update the reasons why actual
results differed from those projected in the forward-looking
statements. Additional information about these and other
assumptions, risks and uncertainties are set out in the "Risks and
Uncertainties" section in the Company's MD&A filed with
Canadian security regulators.
SOURCE Prima Diamond Corp.