EHR buys Canadian diamond explorer

PERTH (miningweekly.com) – Multi-commodity explorer EHR Resources has reached an agreement to acquire Canadian diamond company Nanuk Diamonds, as part of its strategy to diversify into diamonds in North America.

Nanuk holds 625 mineral claims in Northern Quebec covering 274 km2 and containing several occurrences of diamond-bearing kimberlitic dykes that were originally found in the early 2000s, but were left unexplored.

Under the terms of the agreement, EHR would pay A$1-million for Nanuk, which will be satisfied through the issue of 20-million shares in the company, at a price of 5c each.

There will be no milestone payments, EHR said on Friday.

“The acquisition of Nanuk Diamonds provides an excellent, low cost point of entry into the diamonds sector for EHR and we look forward to progressing work at Nanuk in the northern summer of 2020, as well as seeking other opportunities in diamond exploration,” said chairperson Stephen Dennis.

Nanuk will be acquired from Prospect AG Trading, which is associated with EHR director Michael O’Keeffe.

As O’Keeffe already holds an 11.08% interest in EHR, shareholder approval will be sought for the acquisition, which would result in him increasing his shareholding to 16.39%.

The transaction was also subject to a number of conditions, including due diligence.