Diamond Project: Paramount expands in Ghana
ASX-listed diamond-exploration company Paramount Mining Corporation announced, on Tuesday, that it had expanded its presence in Ghana, through an agreement to take an equity stake of up to 85% in the prospective Pramkese diamond and gold project.
The company had signed an agreement with Leo Shield Exploration, which would allow Paramount to undertake a targeted diamond-exploration programme across the 66 km2 Pramkese project, which was situated within a known diamond-producing region, the Birim diamond field.
Paramount would undertake a detailed exploration programme aimed at confirming the potential highlighted by past test work. Programme planning was well advanced, with fieldwork scheduled to commence as soon as possible – probably in the third quarter of this year.
It could earn the 85% equity stake through three stages. During the first phase, which would last up to 12 months, Paramount was to issue Leo Shield Exploration 500 000 ordinary shares in Paramount and pay a $15 000 option fee.
Paramount also had to commit a minimum of $50 000 expenditure on the project and meet all statutory costs on the maintenance of the tenement. It would have the rights to diamonds, gold and other minerals recovered.
During the second phase, which would occur betweem 12 months and 36 months, Paramount would issue Leo Shield Exploration 400 000 ordinary shares in Paramount and 500 000 option exercisable at 10c a share on or before May 31, 2011.
It would also have to commit a minimum of $300 000 expenditure on the project, as well as meet all statutory costs on the maintenance of the tenement.
After completion of the second phase, Paramount was entitled to acquire 85% of the project by issuing Leo Shield Exploration with 1,2-million ordinary share in Paramount and one million option exercisable at 10c a share within a three-year term.
CEO Maureen Muggeridge said the agreement was an exciting development for Paramount, which was expanding its global diamond presence at a time when diamond demand continued to firm, with prices rising substantially as a direct consequence.
“The world is in urgent need of new diamond mines, with growing demand and a critical global shortfall. This presents a favourable environment for Paramount and its shareholders, with a suite of quality projects and a proven team to develop them,” she commented.
Paramount said it was already exploring the Ochinso and Osenase project areas, also situated within the Birim diamond field that covered more than 350 km2.
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