Vaaldiam Resources (VAA-T) has decided to transfer its Canadian diamond assets into a subsidiary company to be called Craton Minerals so it can solely focus on its Brazilian diamond projects.
Vaaldiam says this move will enable it to be completely devoted to diamond production and cash flow from its Duas Barras and Chapada mines. It will also allow it to continue development at the feasibility-stage Brauna kimberlite deposits and its other exploration projects.
During the first half of 2008, Vaaldiam reported a net loss of $11.8 million and revenue of $6.2 million.
Commercial production began at Duas Barras a year ago and the company projects it will produce 60,000 carats in 2008 from its indicated of 262,000 carats and inferred resource totaling 129,000 carats.
Vaaldiam began production at Chapada in March 2007 and projects annual production of 30,000 carats. Average diamond value is about US$400 per carat. The project has a resource of 270,000 carats within a 15-sq.-km area but the company has another 270 sq. km on which to explore.
The company says divesting the Canadian assets will help to realize their true value.
The plan is to list Craton on a Canadian stock exchange and then give 49% of Craton shares ot Vaaldiam shareholders. Teh remainder of teh shares will be transferred at a later date.
Craton’s properties will include the Candle Lake and Centennial properties in Saskatchewan and the Utikuma and Calling properties in Alberta.
Candle Lake has two diamond-bearing kimberlites on a 221-sq.-km property. The company has tested 2,055 kg of core so far, which averaged 24 carats per hundred tonnes and included 41 macro diamonds. Details of the other projects are not included on the Vaaldiam website.
New, independent management will be appointed for Craton though it will initially share technical and corporate staff with Vaaldiam to save money.
Vaaldiam shares were up 3 today to 14 apiece on a trading volume of more than 887,000 shares.
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