Canabrava Sells All its Brazilian Assets
July 30, 03
Canabrava Diamond announced today that it has entered into a letter agreement with Black Swan Resources in which Black Swan will acquire all of Canabrava's assets in Brazil through the acquisition of Canabrava's wholly owned subsidiary, Parima Mineracao SA.
Canabrava has in recent years been exploring for diamonds in Brazil through Parima Mineracao. In acquiring Canabrava's subsidiary, Black Swan will be acquiring all of Canabrava's diamond exploration assets in Brazil, consisting of more than 34,000 hectares of mineral claims, office and laboratory buildings and equipment, motor vehicles and other exploration equipment and a geophysical and sampling database compiled by Canabrava.
Black Swan will purchase Parima Mineracao for $225,000 cash payable in installments and Canabrava will also receive a 2% royalty on gross revenue generated by the production and sale of diamonds from any future mine developed within the claims being acquired, plus a 1% royalty on an area covered by a 6571 square kilometre geophysical survey, over and surrounding the claims acquired.
Canabrava Diamond is concentrating its exploration activities for diamonds in Canada both independently and through joint ventures.