De Beers Eyes Stake in Canada Diamond Project

RAPAPORT... De Beers and Mountain Province have signed a non-bindingagreement that opens the door to the two miners having shared ownership of the Kennady Diamonds project in Canada.The two companies are currently partners in the Gahcho Ku?(C) mine,with De Beers holding 51% and Mountain Province owning the remaining 49%. Thememorandum of understanding (MoU) recognizes the possibility for Mountain Provinceto incorporate its recently acquired Kennady Diamonds exploration properties intothe existing Gahcho Ku?(C) project, the companies said in statements Friday. "We have been very pleased with the progress of ourpartnership with Mountain Province in the Gahcho Ku?(C) mine," De Beers Canada CEOKim Truter said. "Their proposed acquisition of Kennady Diamonds opens up somepotential new options for the operation's future." In January, Mountain Province announced it would reacquireKennady after a five-year separation, with CEO David Whittle stating the assetswould strongly compliment Gahcho Ku?(C). The two projects areadjacent. The MoU is dependent on Mountain Province gaining the necessary approval for the Kennady takeover.