Blackstone gains Ursus diamond property

Vancouver — Blackstone Ventures (BLV-V) has inked a deal with the numbered company 4763 NWT to acquire the Ursus diamond property in the Coronation Gulf area of Nunavut.

The 46-sq.-km property is 45 km northwest of recent diamondiferous kimberlite discoveries made at the Anuri pipes by Kennecott and at the Knife pipe by De Beers. The former is a subsidiary of Rio Tinto (RTP-N); the latter, a subsidiary of Anglo American (AAUK-Q).

Blackstone can acquire the property by paying staking costs of 60 per acre and exploration expenditures of $6 per acre over three years. The junior is also required to issue 1.2 million units over a 3-year period, with each unit representing one share plus a one-year share purchase warrant. The property is subject to a 2% gross overriding royalty and a 2% net smelter return royalty. Blackstone can buy 1% of each royalty for $1 million at any time.

Blackstone has also arranged a non-brokered private placement for $150,000 whereby 1.5 million units are sold for 10 each. A unit consists of one share and half a share purchase warrant. Each whole warrant can be converted into a share for 15 for one year.