1st Jun 2016 06:53
LONDON (Alliance News) - Karelian Diamond Resources PLC Wednesday said the mining permit for the newly-acquired Lahtojoki diamond project in Finland has been formally transferred to the company along with additional technical data and claim reports.
Karelian struck a deal to acquire the permit over the project in April, agreeing to pay EUR50,000 upfront and a further EUR100,000 over two years if it decides to progress the project. Karelian also awarded a 1.0% royalty on production to the seller of the permit, A&G Mining Oy.
On Wednesday, Karelian said the permit has now been formally transferred to the company after the Finnish Safety and Chemical Agency approved the transfer. The Lahtojoki diamondiferous pipe is situated in a 55 hectare claim area in the Kuopio-Kaavi area of Finland.
"I am delighted that the formalities regarding the acquisition have been completed. We look forward to immediately reviewing the technical data which has been received. The acquisition of the Lahtojoki diamond pipe mining permit complements our existing licences and is a major step forward for our diamond programme in Finland," said Richard Conroy, chairman of Karelian.
Karelian raised GBP250,000 through a share placing last month in order to fund work on Lahtojoki project and for working capital purposes, issuing 31.3 million shares at 0.8 pence each alongside an equal amount of warrants carrying exercise prices of 1.6 pence each.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Karelian