| Fri 29 Jan 2010, 11:46 | | BCD - BRC DiamondCore - BRC Diamondcore And Rio Tinto Enter Into Agreement For |
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BCD
BCD
BCD - BRC DiamondCore - BRC Diamondcore And Rio Tinto Enter Into Agreement For
Exploration Of Iron Ore In Northern Dr Congo And Withdrawal Of Cautionary
Announcement
BRC DIAMONDCORE LTD.
(Incorporated in Canada)
(Corporation number 627115-4)
Share code: BCD & ISIN Number: CA05565C1095
("BRC DiamondCore" or "the Company")
BRC DIAMONDCORE AND RIO TINTO ENTER INTO AGREEMENT FOR EXPLORATION OF IRON ORE
IN NORTHERN DR CONGO AND WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Toronto, Canada and Johannesburg, South Africa - January 28, 2010. BRC
DiamondCore Ltd. ("BRC" or the "Company") (TSX - BCD; JSE - BCD) is pleased to
announce that the Company has entered into an agreement (the "JV Agreement")
with Rio Tinto Minerals Development Limited ("Rio Tinto") for the exploration
for iron ore in areas within the Province Orientale, Democratic Republic of the
Congo (the "DRC"). These areas total approximately 4,550 square kilometres and
are covered by exploration permits (the "Permits") in which the diamond and iron
ore rights had been controlled by the Company. Under the JV Agreement, which is
in the form of a shareholders` agreement, the Company will own 25% of the share
capital of the joint venture company which holds the Permits, with Rio Tinto
owning 75% of the share capital. This structure is expected to implemented by
the end of February 2010. BRC has retained the diamond rights.
Under the JV Agreement, all iron ore exploration up to and including the
completion of any feasibility study will be funded by Rio Tinto. The Company
will not suffer any dilution during this period, such that the Company`s 25%
interest in the properties will be maintained during this period. The
exploration will be carried out by Rio Tinto (or one of its affiliates) as
operator. After the completion of any feasibility study, funding for the
project is to be provided by Rio Tinto and BRC pro rata based on their
respective interests in the joint venture company.
Initial geological research and exploration indicates that the Permit areas,
which are largely unexplored using modern exploration methods, are highly
prospective for the discovery of iron ore deposits. As part of the 2010
exploration program, Rio Tinto plans to undertake a reconnaissance drill program
over the Permit areas.
Commenting on the JV Agreement, Dr. Mike de Wit, President of BRC, said: "This
strengthens the existing relationship between the two companies. We are very
pleased to have Rio Tinto as our partner in the DRC for both our diamond and now
iron ore exploration programs and that these programs are well funded through
the Rio Tinto/BRC joint ventures."
Qualified Person
Dr. Mike de Wit, President of the Company and a "qualified person" (as such term
is defined in National Instrument 43-101), has reviewed the technical
information in this press release.
Rio Tinto is a leading international mining group headquartered in the United
Kingdom, combining Rio Tinto plc, a London and NYSE listed company, and Rio
Tinto Limited, which is listed on the Australian Securities Exchange. Rio
Tinto`s business is finding, mining and processing mineral resources. Major
products are aluminium, copper, diamonds, energy (coal and uranium), gold,
industrial minerals (borax, titanium dioxide, salt, talc) and iron ore.
Activities span the world but are strongly represented in Australia and North
America with significant businesses in South America, Asia, Europe and southern
Africa.
BRC DiamondCore Ltd. is an African-focused diamond explorer with projects in the
DRC. Led by a management team with extensive experience in diamond exploration
and mine development, the Company works in a systematic and responsible manner
to discover, assess and develop diamond resources for the benefit of its
shareholders and local stakeholders.
For further information, please visit our website, www.brc-diamondcore.com, or
contact:
In Toronto: Martin D. Jones, Vice President, Corporate Development, (416) 366-
2221 or 1-800-714-7938.
In Johannesburg: Brian P. Scallan, Vice President, Finance, +27 11 9582885.
WITHDRAWAL OF CAUTIONARY ANNOUNCEMENT
Further to the cautionary announcement issued on 6 November 2009, 11 December
2009 and 13 January 2010 respectively shareholders are advised that this
cautionary is now withdrawn and caution is no longer required to be exercised by
shareholders when dealing in the Company`s securities.
JOHANNESBURG
29 January 2010
Date: 29/01/2010 11:46:01 Produced by the JSE SENS Department.
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