Following a due diligence review, Kensington Resources (KRT-V) has elected not to proceed with the acquisition of the South African Loxton Dal and Frank Smith diamond mines from a wholly owned subsidiary of Diamond Fields Resources (DFR-T).
The junior has instead decided to devote its full attention to its Saskatchewan exploration projects: Fort la Corne (diamonds) and Clearwater (nickel).
The Fort la Corne project is a joint venture between Kensington and partners Uranerz Exploration & Mining, Cameco (CCO-T) and De Beers subsidiary Monopros. Each company will hold a 25% interest once Kensington completes the terms of a $3.4-million earn-in agreement.
At the Clearwater project, in the northwestern part of the province, Kensington can earn a half interest from operator Uranerz Exploration by spending $1.5 million on exploration by September 1998.
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