DIAMOND PAGE — Redaurum settles Kelsey Lake dispute

A property ownership dispute between Redaurum (RRK-T) and a railway company has been settled.

The agreement-in-principle is intended to settle the claim made by Union Pacific relating to ownership of mineral interests at the Kelsey Lake diamond mine, situated along the border of Colorado and Wyoming.

The agreement does not have any material or financial impact on Toronto-based Reduarum or its operating subsidiary, Diamond Company, which manages the mine under a long-term lease with the property owners. Those owners and Union Pacific reached an agreement as to their interests in the property, thereby releasing Redaurum from all liability under Union Pacific’s claims.

Final documentation is expected shortly, which will allow Redaurum to move forward with plans to expand the new diamond operation.

In other news, Redaurum and equal partner Auridiam Consolidated announced the $2.5-million purchase of a fleet of earth-moving equipment for the River Ranch diamond mine in Zimbabwe.

The partners say the equipment will allow the mine to operate more efficiently and reduce production costs. The new equipment, combined with other cost-saving measures, is expected to return the River Ranch mine to profitability by the end of this year.