Karelian Diamond Resources to acquire the diamond mining permit for its Finland Lahtojoki project

Karelian Diamond Resources has agreed to acquire the diamond mining permit over the Lahtojoki project in Finland from A&G Mining Oy for EUR150,000 plus a royalty.

Karelian will pay an initital EUR50,000, plus a further EUR100,000 after 24 months unless Karelian decides not to develop the project. A royalty to AGM of 1% is payable either in diamonds or cash on diamond production up to 2.5 million carats and 2% payable on diamond production above 2.5 million carats.

The Lahtojoki diamondiferous kimberlite pipe is situated in the Kuopio – Kaavi region of Finland in a highly favourable location with excellent infrastructure including good road access and power distribution and local technical and logistics availability.

The company believes that the Lahtojoki diamondiferous kimberlite pipe has the potential to become a profitable low strip ratio open pit diamond mine. It will now review the exploration and feasibility work conducted to date at Lahtojoki and carry out any further studies deemed appropriate.

Chairman Professor Richard Conroy said: “The acquisition of a mining permit over the Lahtojoki diamond project is excellent news. It is potentially a low cost way for Karelian to take its initial step toward becoming a diamond producer. This complements our diamond exploration programme in Finland and confirms our view that Finland could become a major diamond province.”

Source: Stock market wire