14th Dec 2005 09:14
Sunrise Diamonds PLC14 December 2005 14 December, 2005 SUNRISE ACQUIRES DIAMOND EXPLORATION DATABASE FOR WHOLE OF FINLAND • BHP Billiton Database Gives Sunrise 6 Year Leap-Forward In Exploration Of Karelian Craton • Consideration Is Five-Year Option On 5m Sunrise Shares At 5p Each • BHP Billiton Has Right To Match Terms Of Any Third Party JV or Acquisition Offer_________________________________________________________________________________________ Sunrise Diamonds plc ("Sunrise" or "the Company") is pleased to announce that ithas signed an agreement with BHP Billiton to acquire exclusive use of BHPBilliton's diamond exploration database for the whole of Finland. It includesresults from over 18,000 geochemical samples, 25,000 line km of close-spacedairborne geophysical data, a large archive of ground magnetic and drilling dataand numerous evaluation reports. Sunrise estimates that this extensive databasehas a replacement value of over US$10milllion. Terms for the acquisition are the issue to BHP Billiton of a 5-year option toacquire 5 million Sunrise shares at 5p each (a premium of 150% to the shareprice on 13 December 2005) and granting it the right to match any third partyterms for any future joint venture or acquisition of any Sunrise's diamondexploration projects in Finland. Should this result in a JV with BHP Billitonbeing established, BHP Billiton will also have the right to match the diamondmarketing terms and conditions offered by any third party. BHP Billiton acquired the diamond database in 2001 as a result of its takeoverof Dia Met Minerals Ltd ("Diamet"), the Canadian exploration company whose mainasset at that time was its Ekati diamond project in the Northwest Territories,which is now in production. The database was assembled from the results of 6years' exploration (1994-2000) by Diamet in Finland and includes merged datafrom a joint venture with Australia's Ashton Mining. Ashton had been exploringin Finland since 1986 and had discovered 25 kimberlite pipes, mainly in theKaavi-Kuopio area near the south-west margin of the Karelian Craton. Diamet's exploration activities in Finland were directed by Chuck Fipke, thepioneering geologist whose discovery of Ekati resulted from his dogged devotionto tracing kimberlitic indicator mineral trains for many hundreds of miles backto their source. Diamet's exploration in Finland ended with the BHP Billitontakeover, but target selection was ongoing until then. Commenting today, Sunrise Chairman, Mr Patrick Cheetham, said: " The replacementvalue of this database is more than twice our current market capitalisation. Itwill help focus our exploration effort in the Kuusamo area where we recentlyannounced the discovery of micro-diamonds. It also gives us a 6-year leapforward in target definition and exploration in the remainder of the Finnishsector of the Karelian Craton. Over the border in Russia the same craton alreadyhosts producing diamond mines." Further Info: Patrick Cheetham, Sunrise Diamonds plc. Tel: +44 (0)1625-505947.Mobile: +44 (0)7767-458751 John Greenhalgh/Ron Marshman, City of London PR Ltd. Tel: +44 ( 0)20-7628-5518 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Sunrise ResBHP Group