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Gem International amends Dala terms to include kimberlites

Last updated: 09:32 25 Jan 2017 EST, First published: 10:32 25 Jan 2017 EST

picture of diamond
Six kimberlite pipes have been identified at Dala by previous operators

Gem International Resources Inc (CVE:GI)  has changed its earn-in arrangement at the Dala diamond project in Angola.

The rights now include exploration and exploitation for kimberlites as well as alluvial diamonds.

Numerous magnetic kimberlite targets remain untested at Dala and an extensive data base exists, Gem added.

Six kimberlite pipes have already been identified by other operators but have seen only limited exploration.

The new terms will see Gem International acquire 88% of Angolan associate Global Gem's 45% interest in Dala by paying US$1mln (in three tranches) over the years 3-5 following acquisition. Global Gems’ owners will also be entitled to 10mln shares in each of the same years.

Gem International must also spend US$13mln on exploration and development over 5 years. The first US$3mln of this is due by 31 May.

It has already given Global Gems US$300,000 as start-up capital, which will be credited against first year expenditures.

Gem International intends to raise C$500,000 through a private placing at C$0.05, of which C$150,000 will be paid to Global Gems as part of the first year’s expenditure.

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