Diamond news – diamond mining news: BRC DiamondCore Ltd. has entered into an agreement with Rio Tinto Minerals Development Limited for the exploration for iron ore in areas within the Province Orientale, Democratic Republic of the Congo (DRC).
These areas total approximately 4,550 square kilometres and are covered by exploration permits in which the diamond and iron ore rights had been controlled by the company. Under the JV Agreement, which is in the form of a shareholders’ agreement, the company will own 25% of the share capital of the joint venture company which holds the Permits, with Rio Tinto owning 75% of the share capital. This structure is expected to implemented by the end of February 2010. BRC has retained the diamond rights.
Under the JV Agreement, all iron ore exploration up to and including the completion of any feasibility study will be funded by Rio Tinto. The company will not suffer any dilution during this period, such that the company’s 25% interest in the properties will be maintained during this period. The exploration will be carried out by Rio Tinto (or one of its affiliates) as operator. After the completion of any feasibility study, funding for the project is to be provided by Rio Tinto and BRC pro rata based on their respective interests in the joint venture company.
Initial geological research and exploration indicates that the Permit areas, which are largely unexplored using modern exploration methods, are highly prospective for the discovery of iron ore deposits. As part of the 2010 exploration program, Rio Tinto plans to undertake a reconnaissance drill program over the Permit areas.
Commenting on the JV Agreement, Dr. Mike de Wit, President of BRC, said: “This strengthens the existing relationship between the two companies. We are very pleased to have Rio Tinto as our partner in the DRC for both our diamond and now iron ore exploration programs and that these programs are well funded through the Rio Tinto/BRC joint ventures.”
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 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.
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