VANCOUVER, July 3, 2014 /CNW/ - Prima Fluorspar Corp.
(TSX.V:PF) ("Prima" or the "Company") is pleased to announce that
it has entered into a property option agreement (the "Agreement")
dated June 27, 2014 with DG Resource
Management Ltd. ("DG Resource"), whereby Prima can acquire an
undivided 100% interest in and to 46 mineral claims covering more
than 42,000 ha (104,000 acres) in the southern portion of the Slave
Province, Northwest Territories.
The claims are called the Godspeed Lake Diamond Property
("Godspeed").
Reflecting its new focus on diamond exploration, the Company
also announces that it has changed its name to "Prima Diamond
Corp." and will now trade under the symbol "PMD" on the TSX Venture
Exchange (the "Exchange"), which is subject to Exchange
acceptance.
In 1991, diamondiferous kimberlites were first discovered in the
Slave Province, Northwest
Territories, leading to the largest staking rush in Canadian
history. Three major diamond mines resulted – Ekati, Diavik and
Snap Lake - making Canada the
third largest diamond producer in the world, by value.
A new diamond mine in the Southern Slave Province in the
Northwest Territories - Gahcho Kué
- is slated for production in 2016 and is located immediately north
of the Godspeed Lake Diamond Property.
Robert Bick, Prima President
and CEO comments,
"Diamond exploration in Canada
is attracting increased attention with world diamond supplies
dwindling as several of the bigger mines decrease production while
the demand for diamonds is increasing with particular growth in
China and India.
The Godspeed Lake Diamond Project borders Gahcho Kué considered
to be the world's largest and richest new diamond mine. Godspeed is
within 5 kilometers of the heart of the Kennady Diamond Kimberlite
Cluster.
Godspeed is significantly under-explored compared with other
properties in this area and represents excellent potential to
discover additional kimberlites.
Prima's work program will take advantage of innovative
geophysical exploration methods not available during the 1990's
Canadian diamond rush."
Godspeed Lake Diamond Property Highlights:
- Borders Gahcho Kué (51% De Beers, 49% Mountain Province) projected for production in
2016
- Immediately east of the Kennaday Lake Kimberlite Cluster
- Adjacent to high diamond grades:
- Gahcho Kué Project: Host to 3 kimberlite pipes with a
combined probable Mineral Reserve Estimate of 35.4 million tonnes
grading 1.57 cpt (55.5 million contained carats)*
- Kennady North Project: Host to four kimberlites.
Two are in an advanced stage of exploration with diamond contents
of 4.32** and 9.93*** cpt
- Godspeed is significantly under-explored in a region where
Kimberlites commonly occur in clusters of multiple pipes
* Mountain Province Diamonds Feasibility Study (May 13,
2014) ** Total "commercial" size diamonds in
Kelvin Pipe bulk sample, Kennady Diamonds News Release December
16th, 2013 *** Total "commercial" size diamonds in
Faraday Pipe bulk sample, Kennady Diamonds News Release September
18th, 2013 |
Click here to view the Godspeed Lake Diamond Property location
map.
Terms of the Agreement
In consideration of the grant of the option, Prima has agreed to
pay to DG Resource an aggregate of $150,000 cash and the issuance of 4,500,000
common shares of Prima payable as follows:
$10,000 upon execution of the
Option Agreement (paid);
an additional $100,000 upon
Exchange acceptance;
issue 2,000,000 common shares upon Exchange acceptance;
an additional $20,000 within three
months of Exchange acceptance;
an additional $20,000 within six
months of Exchange acceptance; and
issue an additional 2,500,000 common shares one year after the
Exchange acceptance.
DG Resource will also retain a 2½% Gross Overriding Royalty on
all diamond production. 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.
About Prima
Prima is focusing on diamond exploration in the Southern Slave
Province in Canada which hosts the
proposed Gahcho Kué diamond mine and other diamond projects with
high-grade, diamondiferous kimberlites at a time when world diamond
demand is growing and supplies are decreasing.
Board Resignation
The Company announces the resignation from the Board of
Directors of Jenna Hardy who wishes
to focus on other business opportunities.
CEO/President Robert Bick
comments, "I want to particularly thank Jenna for her committed
professionalism and her profound technical expertise which were
invaluable to the Company. We wish her the best of success in her
ongoing ventures."
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 FLUORSPAR 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. 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 name change. 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 Fluorspar Corp