EHR Resources Ltd (ASX: EHX; “EHR” or “the Company”) is pleased to announce that it is now in a position to earn a 40% interest in the Naujaat diamond project in Canada, after committing the funds required for a C$5.6 million preliminary bulk sample in 2021.
EHR has notified North Arrow Minerals Inc (TSXV: NAR; “North Arrow”) of the Company’s unconditional commitment to fund the Phase One Earn-In Option Agreement (“the Agreement”) over Naujaat. After EHR made an initial C$300,000 payment in June 2020, the Agreement was contingent on the Company being able to secure financing for the required remaining C$5.3 million earn-in payments before 1 April 2021. EHR recently completed a successful capital raise that has enabled this commitment to be made, and payments will be made in accordance with a cash-call schedule defined in the Agreement.
Under the guidance of the joint Technical Committee established as part of the Agreement, North Arrow has utilised the C$300,000 advance on expenditures to procure fuel and sampling supplies, which are currently being shipped to Naujaat via annual community sealift. With these materials and the full program financing now in place, the program for collection and processing of a 1,500-2,000 tonne preliminary bulk sample remains on track to commence in June 2021. The sample will be shipped south from the project site and processed during the fourth quarter of 2021, with final diamond recovery results scheduled for the first quarter of 2022.
In confirming this development, EHR’s Managing Director, Mr Peter Ravenscroft, said: “We are very pleased to now be committed to securing a significant stake in Naujaat, which is one of the cornerstone projects of our evolving diamond strategy. There is now certainty over the planned execution of the Phase One bulk sample which will confirm the potential value contribution of the fancy vivid orangey-yellow diamonds at Naujaat. With fuel and sampling supplies already on their way to the project site, we look forward to getting started on this program in June next year.
“It is particularly gratifying to be able to deliver this funding commitment during a period of significant economic uncertainty due to Covid-19, and this represents further demonstration of our ability to successfully execute investments at a favourable time in the diamond cycle for asset acquisitions.”
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