Diadem Resources (DIR-M) anticipates that a private placement will enable it to resume exploration at its Leek Springs diamond project in the Sierra Nevada Mountains of central California.
The company has inked a deal with a private company, Del Mar Financial Services, to the tune of US$3 million.
In the past year, an airborne magnetic survey located 20 anomalies, seven of which were drilled and found to contain diamonds. Three of the larger anomalies are as large as 200 acres.
John Ryder, a consultant to Diadem, says the company plans to follow up with stream-sediment and outcrop sampling, as well as ground magnetics. Plans call for as much as 12,000 ft. of drilling, the cost of which is estimated at US$2 million.
So far, Diadem has drilled more than 50 holes in the known bodies, which are situated in crater facies material comprising 800 acres.
The company has earned a 40% interest in Leek Springs, and has the option of spending US$3 million to earn an additional 55% interest.
Diadem is also negotiating a joint-venture proposal to develop its La Mestiza gold property in Nicaragua with a private company, called the Sheridan Platinum Group. Under the deal, Diadem would grant Sheridan warrants to buy 1 million shares of the company at 20 cents per share.
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