TORONTO and JOHANNESBURG, South Africa, Nov. 6 /CNW/ - BRC DiamondCore Ltd. ("BRC" or the "Company") (TSX - BCD; JSE - BCD) is pleased to announce that the Company has signed a Letter of Intent with Rio Tinto Mining and Exploration Limited ("Rio Tinto"), whereby Rio Tinto will fund the exploration of certain parts (the "JV Property") of the Company's Tshikapa kimberlite project located in Kasai-Occidental province in the Democratic Republic of the Congo. The JV Property does not include the ground covered by the ACACIA sprl exploration permits.
The Letter of Intent proposes that Rio Tinto will have the right, under a staged earn-in arrangement, to earn a 75% interest in a joint venture company (the "JVCo") which would hold the ownership interests in the JV Property, with the Company retaining a 25% interest in the JVCo.
The above proposed earn-in arrangement is subject to various conditions, including completion of due diligence and negotiation and execution of a definitive agreement between the parties.
A drilling program on the JV Property is expected to commence this month.
The Company's Tshikapa project is situated in the highly prospective "Kimberlite Emplacement Corridor" extending northeastward from the Kimberlite fields of the Lunda Norte Province in Angola. The area has produced well over 100 million carats of diamonds; the results from stream samples taken in the area indicate the presence of promising kimberlitic indicators. Additional information with respect to the Tshikapa project is contained in a technical report dated March 31, 2009 and entitled "National Instrument 43-101 Technical Report on the Tshikapa Project of BRC DiamondCore Ltd. in the Democratic Republic of Congo". A copy of this report can be obtained from SEDAR at www.sedar.com.
Dr. Mike de Wit, President of the Company, is the "qualified person" (as such term is defined in National Instrument 43-101) who is responsible for the technical information in this press release relating to the Tshikapa project.
Rio Tinto is a leading international mining group headquartered in the United Kingdom, combining Rio Tinto plc, a London and NYSE listed company, and Rio Tinto Limited, which is listed on the Australian Securities Exchange. Rio Tinto's business is finding, mining and processing mineral resources. Major products are aluminium, copper, diamonds, energy (coal and uranium), gold, industrial minerals (borax, titanium dioxide, salt, talc) and iron ore. Activities span the world but are strongly represented in Australia and North America with significant businesses in South America, Asia, Europe and southern Africa.
BRC DiamondCore Ltd. is an African-focused diamond explorer with projects in the Democratic Republic of the Congo (the "DRC"). Led by a management team with extensive experience in diamond exploration and mine development, the Company works in a systematic and responsible manner to discover, assess and develop diamond resources for the benefit of its shareholders and local stakeholders.
This press release contains forward-looking statements. All statements, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future (including, without limitation, statements relating to the exploration of the JV Property pursuant to the proposed earn-in arrangement with Rio Tinto, potential mineralization and plans and objectives with respect to the exploration and development of the JV Property) are forward-looking statements. These forward-looking statements reflect the current expectations or beliefs of the Company based on information currently available to the Company. Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements, and even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things, failure to conclude the proposed earn-in arrangement with Rio Tinto as a result of one of the conditions to such conclusion not being fulfilled (including failure to execute a definitive agreement between the parties), the possibility that future exploration results will not be consistent with expectations, changes in equity markets, changes in diamond markets, foreign currency fluctuations, political developments in the DRC, changes to regulations affecting exploration or development activities, uncertainties relating to the availability and costs of financing needed in the future, delays in obtaining or failure to obtain required project approvals, the uncertainties involved in interpreting geological data and the other risks involved in the diamond exploration business. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Although the Company believes that the assumptions inherent in the forward-looking statements are reasonable, forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due to the inherent uncertainty therein.
SOURCE BRC DiamondCore Ltd.
For further information: For further information: please visit our website, www.brc-diamondcore.com, or contact: In Toronto: Martin D. Jones, Vice President, Corporate Development, (416) 366-2221 or 1-800-714-7938; In Johannesburg: Brian P. Scallan, Vice President, Finance, +27 11 9582885