CALGARY, April 26 /CNW/ - Shore Gold Inc. (SGF:TSX) ("Shore") and
Diamondex Resources Ltd. (DSP-TSX.V) ("Diamondex") are pleased to announce
that they have entered into an agreement with Ashton Mining of Canada Inc.
("Ashton") (a wholly owned subsidiary of Stornoway Diamond Corporation) under
which Shore and Diamondex have agreed to purchase Ashton's interest in the
Buffalo Hills property in north central Alberta for a total consideration of
$17.5 million. The agreement provides that Shore and Diamondex will pay $8.75
million and $6.25 million respectively in cash, and Diamondex will pay a
further $2.5 million in the form of common shares of Diamondex.
The Buffalo Hills Project is presently a joint venture with Ashton
Diamonds (Canada) Inc., (a wholly owned subsidiary of Ashton), EnCana
Corporation and Pure Diamonds Exploration Inc. To date, the joint venture has
spent in excess of $30 million on exploration including geophysics, drilling
and mini-bulk sampling. Under the terms of this agreement, Shore and Diamondex
have the right to acquire Ashton's approximate 45 percent interest in the
project on a 50/50 basis, and have the option to increase their collective pro
rata interest to 72.5 percent by funding the next $15 million of exploration
expenditures before April 30, 2010.
The closing of the sale is subject to a number of conditions, including:
(a) satisfactory completion of due diligence by Diamondex and Shore;
(b) the execution of a formal purchase and sale agreement; and
(c) receipt of all necessary regulatory approvals and third party
The transaction is also subject to a 30-day right of first refusal
("ROFR") of the two other joint venture partners with Pure Diamonds
Exploration Inc. already having waived its ROFR. Upon closing, Diamondex will
assume operatorship of the project.
The Buffalo Hills Project area is the third largest known district of
significantly diamond-bearing kimberlites in Canada after Lac de Gras in the
Northwest Territories and Fort à la Corne in Saskatchewan. To date, a total of
38 kimberlites have been discovered in the region, 26 of which are
diamondiferous. These known kimberlite pipes range up to 47 hectares in
surface area. Samples larger than ten tonnes have been collected from five of
these bodies, three of which have returned a diamond content greater than 10
cpht. A 22.8 tonne sample collected from K252 in 2001 returned a diamond
content of 55 cpht, the highest for the district determined to date. Four of
the kimberlites are exposed in outcrop.
Shore and Diamondex believe the kimberlites in the Buffalo Hills region
show the characteristic large tonnage, low grade and attractive diamond
populations found in other regions that have either delivered significant
economic rewards or are presently the subject of advanced exploration.
Diamondex's President & CEO, Mr. Randy Turner, "is excited about the
opportunity to continue advancing this project with Shore Gold as a partner.
We look forward to benefiting from Shore's technical expertise in a very
similar geological environment at Fort à la Corne". Shore's President & CEO,
Mr. Kenneth MacNeill stated, "We are pleased to participate with Diamondex in
this early stage project. From the information reviewed, the similarities to
our more advanced projects in central Saskatchewan are evident. While Shore's
primary focus will continue to be the Fort à la Corne region in Saskatchewan,
we see an opportunity to benefit from our association with Diamondex and their
operatorship of Buffalo Hills".
Caution Regarding Forward-Looking Statements
From time to time, Shore makes written or oral forward-looking statements
within the meaning of certain securities laws, including the "safe harbour"
provisions of the Ontario Securities Act and the United States Private
Securities Litigation Reform Act of 1995. Shore may make such statements in
this press release, in other filings with Canadian regulators or the United
States Securities and Exchange Commission, in reports to shareholders or in
other communications. These forward-looking statements include, among others,
statements with respect to Shore's objectives for the ensuing year, our medium
and long-term goals, and strategies to achieve those objectives and goals, as
well as statements with respect to our beliefs, plans, objectives,
expectations, anticipations, estimates and intentions. The words "may,"
"could," "should," "would," "suspect," "outlook," "believe," "plan,"
"anticipate," "estimate," "expect," "intend," and words and expressions of
similar import are intended to identify forward-looking statements. In
particular, statements regarding Shore's future operations, future exploration
and development activities or other development plans contain forward-looking
All forward-looking statements and information are based on Shore's
current beliefs as well as assumptions made by and information currently
available to Shore concerning anticipated financial performance, business
prospects, strategies, regulatory developments, development plans,
exploration, development and mining activities and commitments. Although
management considers these assumptions to be reasonable based on information
currently available to it, they may prove to be incorrect.
By their very nature, forward-looking statements involve inherent risks
and uncertainties, both general and specific, and risks exist that
predictions, forecasts, projections and other forward-looking statements will
not be achieved. We caution readers not to place undue reliance on these
statements as a number of important factors could cause the actual results to
differ materially from the beliefs, plans, objectives, expectations,
anticipations, estimates and intentions expressed in such forward-looking
statements. These factors include, but are not limited to, developments in
world diamond markets, changes in diamond valuations, risks relating to
fluctuations in the Canadian dollar and other currencies relative to the US
dollar, changes in exploration, development or mining plans due to exploration
results and changing budget priorities of Shore or its joint venture partners;
the effects of competition in the markets in which Shore operates; the impact
of changes in the laws and regulations regulating mining exploration and
development; judicial or regulatory judgments and legal proceedings;
operational and infrastructure risks and the additional risks described in
Shore's most recently filed Annual Information Form, annual and interim MD&A
and short form prospectus, and Shore's anticipation of and success in managing
the foregoing risks.
Shore cautions that the foregoing list of factors that may affect future
results is not exhaustive. When relying on our forward-looking statements to
make decisions with respect to Shore, investors and others should carefully
consider the foregoing factors and other uncertainties and potential events.
Shore does not undertake to update any forward-looking statement, whether
written or oral, that may be made from time to time by Shore or on our behalf.
SHORE GOLD INC.,
"Harvey J. Bay"
Harvey J. Bay
Chief Financial Officer and Chief Operating Officer
Shore Gold Inc.
"Randy C. Turner"
Randy C. Turner
President and CEO
Diamondex Resources Ltd.
For further information:
For further information: Shore Gold Inc., Phone: (306) 664-2202, Email:
email@example.com, Website: www.shoregold.com; Diamondex Resources Ltd.,
Phone: (604) 687-6644, Email: firstname.lastname@example.org, Website: