Canabrava eyes Falco’s ground

Vancouver — Adding to its promising portfolio of diamond properties, Canabrava Diamond (CNB-V) has picked up additional claims in the Staples and Casselman areas of northern Ontario.

Under a letter of intent with Falconbridge (FL-T), Canabrava can earn a 100% interest in the project by paying $10,000, issuing 100,000 shares and spending $90,000 on exploration over a 3-year period. Falconbridge retains a 2% gross overriding royalty on diamond production, of which Canabrava can purchase 1% of by paying US$1 million.

The discovery of any mineral other than diamonds on the property has that portion reverting back to Falconbridge’s control. Once the option is complete, Canabrava would hold a 2% net smelter royalty over the reverted portion of the project.