Altius Minerals Corporation has incorporated a private company, Adia Resources Inc., for the purpose of accelerating the ongoing exploration and advancement of the Lynx Diamond project, the first discovery of diamonds in Manitoba. As a prelude to the advancement of the project, Adia was formed to carry out exploration work on the project.
The option held by Altius to earn a 100% interest in the project has been assigned to Adia in exchange for 5 million common shares of Adia. In addition, Altius will retain a 2.5% gross overriding royalty on diamond proceeds from the project, which will be effective subject to the buyback of other underlying royalties, a right which Altius will retain.
Adia is currently undertaking a US$2 million private placement at a deemed price of US$0.50 per share which has been fully subscribed by third party investors, including several diamond exploration sector leaders. In addition, Adia has entered into an equity participation and support agreement with De Beers Canada Inc. Under this agreement, De Beers has committed to contribute US$1 500 000 (at a deemed price of US$0.50 per share) in in-kind services and support to Adia in the form of third party and proprietary airborne and heliborne geophysical surveys, microdiamond analysis (MiDA), grade estimation/diamond characterisation and other specialist services. De Beers shall have, among other rights, a pro rata participation right in future equity financings. Subsequent to the private placement and the full provision of in-kind services from De Beers, Adia will be owned >50% by Altius and approximately 15.4% by De Beers.
Read the article online at: https://www.globalminingreview.com/mining/25092018/altius-transfers-lynx-diamond-project-to-adia-resources/