Prospective kimberlite targets have been identified on each of the 7 claim blocks of the Orion Diamond Properties through a recent regional airborne magnetic survey. To view the Orion Property Map, please click: http://www.primadiamondcorp.com/orion
"Prima is committed to acquiring diamond properties in successful and proven diamond regions within Canada," commented Robert Bick, Prima’s CEO. "So when the Orion Diamond Properties were offered to us, we jumped at the opportunity specifically because these properties are in the same diamond-rich producing zone which hosts Renard, Quebec’s new diamond mine. We are also very encouraged by the identification of prospective kimberlite targets on each of the claim blocks."
Renard Diamond Project
The Renard Diamond Project contains Probable Mineral Reserves of 17.9 million carats and is scheduled to begin diamond production in 2016 (January 28, 2013, Stornoway news release) with an 11 years reserve-based mine life with diamond production averaging 1.6 million carats/annum life of mine (NI 43-101 Feasibility Study, March 27, 2013).
Renard has received significant support from the Quebec government and Quebec investors. The Quebec government through Resources Quebec, a subsidiary of provincial agency Investissement Québec, provided $220 million for the Renard project and Caisse de dépôt et placement du Québec provided $105 million. In addition the Quebec government is building road infrastructure to the mine site.
Terms of the Agreement
In consideration of the grant of the option, Prima has agreed to issue to Fiducie Ananke an aggregate of 12,000,000 common shares of Prima upon TSX Venture Exchange (the "Exchange") acceptance. Fiducie Ananke will also retain a 2% Net Sales Royalty ("Royalty") on all diamond production. Prima shall be entitled at any time to purchase 1% the Royalty for $500,000 and the remaining 1% for $1,000,000. The Agreement is subject to final acceptance of the Exchange.
Closing of the agreement is contingent upon Secutor Capital Management Corporation raising a minimum of $2,000,000 for exploration of Prima’s properties and for working capital.
Non-Brokered Private Placement
Prima has arranged a non-brokered private placement financing of up to 7,500,000 Units ("Units") of the Company at a price of $0.10 per Unit with a minimum of 5,000,000 Units for gross proceeds of up to $750,000. Each Unit will consist of one common share in the capital of the Company and one-half of one common purchase share warrant (each full warrant, a "Warrant"). Each whole Warrant will be exercisable into one common share at $0.15 for a period of 24 months from closing.
The non-brokered private placement financing also includes up to 14,583,333 Flow Through Units ("FT Units") of the Company at a price of $0.12 per FT Unit for maximum gross proceeds of $1,750,000. Each FT Unit will consist of one common share issued on a flow-through basis within the meaning of the Income Tax Act (Canada) and one non flow-through Warrant exercisable at $0.15 into one common share for a period of 24 months from closing.
Proceeds of the private placements will be used to conduct exploration on the Company’s Orion Diamond Properties, Munn Lake Diamond Property, Godspeed Lake Diamond Property, Liard Fluorspar Property and for general working capital.
This private placement replaces the $1,000,000 non brokered private placement announced by the Company on August 5, 2014, which will not proceed.
Finder’s fees may be payable by the Company on a portion of the offering in accordance with the Exchange policies and guidelines.
All of the securities issued under this offering will be subject to a hold period expiring four months from closing.
