Vancouver – Kensington Resources (KRT-V) has lined up a $35-million financing for continued exploration of its Fort la Corne diamond project in central Saskatchewan.
The best-efforts financing will be placed through a broker syndicate led by Loewen, Ondaatje, McCutcheon with $5 million as flow-through shares and $30 million as non-flow-through units (comprised of one share and a half-warrant).
Recent mini-bulk sampling recovered a 10.5 and a 4.1 carat diamond from kimberlite pipe 140-141, which has shown indications of a significant large stone population.
The large-diameter drill sampling program tested the upper section of kimberlite breccia beds within the southern, higher-grade portion of pipe 140-141. Recovered stones will be used in grade forecasts and provide preliminary valuations.
The 22,500-hectare Fort la Corne joint venture is owned 42.245% by Kensington Resources, 42.245% by operator De Beers Canada, 5.51% by Cameco (CCO-T) and a 10% carried interest is held by UEM (whose North American assets are equally held by Cameco and Cogema). The project is adjacent to and northwest of Shore Gold’s (SGF-T) Star kimberlite.
The joint venture has budgeted almost $26 million for its 2005 advanced exploration and evaluation program. The accelerated plan foresees a pre-feasibility decision in 2008.
Kensington shares have pulled back from the recent high of $4.06 per share. The issue has recently traded around the $2.35 per share range.
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