Karelian Diamond
Resources plc
(“Karelian Diamonds” or “the
Company”)
1 July 2020
Update on
agreement with Rio Tinto Mining and Exploration Limited
Karelian Diamond Resources plc (“Karelian Diamonds”) (AIM: KDR),
the diamond exploration company focused on Finland, is today providing an update on the
status of its confidentiality agreement (with Back In Rights) with
Rio Tinto Mining and Exploration Limited (“Rio Tinto”) (the
“Agreement”). The Agreement was originally announced on
22 July 2010 and subsequently
extended to 30 June 2020, as
announced by the Company on 26 June
2014.
Under the Agreement, Rio Tinto has been disclosing to Karelian
Diamonds confidential information relating to exploration in
Finland for the purpose of
Karelian Diamonds considering that information in relation to the
Company’s potential and existing exploration programmes in
Finland. In consideration of Rio
Tinto disclosing the confidential information to it, Karelian
Diamonds had agreed that Rio Tinto would have the option
(exercisable at its discretion) to earn a 51 per cent interest in
any project identified by Karelian Diamonds in Finland by Rio Tinto paying the direct cash
expenditures incurred in developing the project subject to certain
conditions. Further details on the Agreement can be found in the
Company’s announcements released on 22 July
2010 and 26 June 2014.
As of today’s date Karelian Diamonds and Rio Tinto have not
entered into a further extension on the Agreement and as a result
the Agreement (including the Back In Rights) has subsequently
lapsed as of today.
Karelian Diamonds is considering the best means to progress its
exploration programme and in particular progress operations at
Lahtojoki and Kuhmo.
A further announcement will be made in due course should any
subsequent agreement be reached or entered into between Karelian
Diamonds and Rio Tinto.
Professor Richard Conroy, Chairman, commented:
“We have had a positive and constructive relationship with
Rio Tinto for a number of years and the confidential information
made available to Karelian has assisted in the Company’s knowledge
base and progression of its mineral exploration programme. Whilst
no agreement has been entered into at this stage to extend the
agreement with Rio Tinto I look forward to our maintaining a good
relationship moving forward.”
Further Information:
Karelian Diamond Resources plc
Professor Richard Conroy, Chairman |
+353-1-479-6180 |
Allenby Capital Limited (Nomad)
Nick Athanas / Nick Harriss |
+44-20-3328-5656 |
Brandon Hill Capital (Broker)
Jonathan Evans |
+44-20-3463-5000 |
Lothbury Financial Services
Michael Padley |
+44-20-3290-0707 |
Hall
Communications
Don Hall |
+353-1-660-9377 |
http://www.kareliandiamondresources.com