Canabrava Signs Agreement With Inco.Business Editors VANCOUVER, British Columbia--(BUSINESS WIRE)--April 15, 2003 Canabrava Diamond Corporation (TSX TSX Toronto Stock Exchange (TSE before April, 2002) TSX Transfer from Stack Pointer to Index TSX True Space Extension VENTURE:CNB CNB Czech National Bank CNB Centro Nacional de Biotecnologia CNB City National Bank CNB Citizens National Bank CNB Croatian National Bank CNB Chloronitrobenzene CNB Corresponsales No Bancarios (Spanish, Colombia) ) announced today that it has executed an agreement with Inco Limited whereby Canabrava will acquire from Inco proprietary analogue geophysical data over the Winisk Project area in northwestern Ontario Northwestern Ontario is the region within the Canadian province of Ontario which lies north and west of Lake Superior, and west of Hudson Bay and James Bay. It includes most of subarctic Ontario. . The data set will also include certain of Inco's ground geophysical surveys Geophysical survey refers to the systematic collection of geophysical data for spatial studies. Geophysical surveys may use a great variety of sensing instruments, and data may be collected from above or below the Earth's surface or from aerial or marine platforms. , geological and geochemical data, including drilling records, within the Winisk Project area. Canabrava will digitize To convert an image or signal into digital code by scanning, tracing on a graphics tablet or using an analog to digital conversion device. 3D objects can be digitized by a device with a mechanical arm that is moved onto all the corners. the analogue geophysical data using a recently developed technique and will combine the digitized data with publicly available exploration data and a proprietary Quaternary geology Quaternary geology is the part of geology that is concerned with the study of the Quaternary, the youngest geological period. Since most of our landscape was formed during this time, that also includes the ice age, it has a strong relationship with geomorphology. map to create a comprehensive geographical information system Geographical Information System - Geographic Information System (GIS) database for the Winisk Project area. This GIS database will be used to develop an exploration program for the location of diamondiferous kimberlites within the Winisk Project area. Under the terms of the agreement with Inco, Canabrava will prepare the database within the first year of the agreement. In addition, Canabrava will now issue 250,000 common shares of Canabrava to Inco, and can earn the right to permanently use and retain the data by spending $1 million over four years on selection and follow-up of geophysical targets and/or on the acquisition and exploration of mineral properties located within a defined area of interest. Canabrava will be the operator of the exploration programs and Inco will have the right to purchase any nickel-copper-PGM concentrates produced from any mineral properties Canabrava acquires within the defined area of interest. Inco will also have the right to (a) elect to acquire 50% of Canabrava's interest in any such mineral property by funding twice Canabrava's property expenditures, including anomaly selection, property acquisition and exploration costs; or (b) receive a royalty on products produced from each acquired property. If Inco elects to acquire an interest in such mineral property, then either party will have the option, by mutual consent, to increase its equity by 10% in any joint-ventured property by funding 100% of a feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change. and by a further 10% by providing all of the funds required to place a deposit into commercial production. Canabrava and Inco are not related parties and all shares to be issued under the agreement to Inco will be subject to a 12-month hold period. No finders' fee will be paid regarding the agreement, which is subject to regulatory acceptance and certain other customary closing conditions. Canabrava Diamond Corporation is actively exploring for diamonds in Canada and Brazil both independently and through major joint ventures with Diamonds North Resources Ltd., Kennecott Canada Exploration Inc., Majescor Resources Inc., Navigator Exploration Corp., and Paramount Ventures and Finance Inc. The Company is 33.7% owned by Southwestern Resources Corp. The TSX Venture Exchange TSX Venture Exchange Originally called the Canadian Venture Exchange (CDNX), this was a result of the merger of the Vancouver and Alberta stock exchanges. The goal of TSX Venture Exchange is to provide venture companies with effective access to capital while protecting investors. has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. |
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