CIN has purchased Pikoo Extensions A, B and C from three private parties earlier this month. Covering 3,447 hectares, the Pikoo Extension A and B properties comprise five claims.
The Pikoo Extension A group adjoins North Arrow Minerals’ Pikoo property to the northeast, while Pikoo Extension B is located around 7km northeast of North Arrow’s Pikoo’s northern boundary. CIN owns full ownership of the properties with no underlying royalties.
Under the LoA, North Arrow is required to reimbursing claim staking costs and fund exploration.
The company should also evaluate the properties to identify kimberlite and test for diamonds through standard caustic fusion analysis within a three year period.
If the transaction is finalized, CIN will receive 2% gross overriding royalty on diamonds, in addition to its 30% interest.
However, North Arrow will have an option to buy 1% royalty for C$1m ($90,608).
In a separate statement, North Arrow said it commenced till sampling program at the Pikoo diamond project, to collect up to 150 till samples which will complement 441 samples collected in June 2014.
Preliminary results for the previous samples revealed new kimberlite indicator mineral trains within the property.
