Juniors raise cash for diamond hunt

As a crew from Aber Resources (TSE) started ground checking geophysical targets on the Diavik joint venture property at the end of June, two other juniors arranged financing for diamond projects in the Northwest Territories.

Tyler Resources (TSE), which owns the 92,000-acre Carat property and the 106,000-acre Crystal property near Lac de Gras, entered into a private placement with Golden Rule Resources (TSE). Consisting of a debenture convertible to Tyler shares at 21 cents and 2.4 million warrants to buy shares at 28 cents, the placement is expected to raise $500,000 immediately and $1.15 million in total.

When the placement is completed, Golden Rule will have a 23.6% stake in Tyler, which is negotiating contracts for airborne geophysical work and expects to be flying its ground within days.

In Vancouver, Kalahari Resources (VSE) says it is in the final stages of completing a farm-in agreement on its 550,000 acres about 30 miles south of the Dia Met-BHP diamond discovery. A letter of intent for the financing is expected by the end of the month.

In other Lac de Gras developments, Bresea Resources (ASE) increased its interest in Bre-X Minerals (ASE) to 50% by exercising warrants to purchase one million shares of the junior. Kennecott Canada recently optioned Bre-X’s eight claims near Lac de Gras.

To date, more than 13.7 million acres have been staked around the Dia Met-BHP diamond discovery. The play now stretches to the north end of Contwoyto Lake and almost as far south as Yellowknife, N.W.T. Kingswood Explorations (ASE) just signed an agreement to earn a 75% interest in a 51,831-acre property next to the Lupin gold mine. The property, owned by Acadia Minerals Venture (TSE) and Contwoyto Gold Fields (ASE), has both gold and diamond potential, Kingswood says.

About 45 miles southeast of the discovery, Barexor Minerals (ME) has optioned a 16-claim block totalling 33,670 acres. By making staged payments of $50,000 and 800,000 shares and spending $750,000 on exploration over 3 years, Barexor can earn a 100% interest in the property, subject to a 3% royalty on gross proceeds.

At Canada’s other diamond play near Kirkland Lake, Ont., Greater Lenora Resources (TSE), Pure Gold Resources (TSE) and Wheaton River Minerals (TSE) all acquired new prospects.

In partnership with Strike Minerals (CDN), Wheaton acquired four claims just south of the diamond-bearing kimberlite pipe discovered by Sudbury Contact Mines (TSE) earlier this year. Wheaton also revised its agreement with Glencairn Explorations (ASE) and Strike. Under the new terms, Wheaton will purchase a 50% interest in four claim blocks from Glencairn for $8,000 and have the option to earn an additional 25% by drilling “14 bulls-eye” magnetic anomalies on the claims.

Pure Gold, already active in the Northwest Territories, acquired 44 leased and patented claims in Hearst and McElroy twps., also south of the discovery pipe. Noramco Mining (TSE) and Gothic Resources (ME) recently sold their 56.9% interest in Pure Gold to a group headed by Donald Sheldon of Vancouver. Greater Lenora has increased its holdings in the Kirkland Lake camp to 5,000 acres by acquisition and staking.