European Diamonds Buys Finnish Diamond Claim

European Diamonds, a miner traded on London’s AIM stock exchange, said it has bought a new property with a record of diamond finds in central Finland.

The firm, which has been looking for gems in Finland since 1999, bought the Lahtojoki diamond claim from a private Finnish group in a cash and shares deal.

European Diamonds paid 100,000 euros ($118,000) for the claim and associated data and is planning a feasibility study later this year.

The firm will pay a further 50,000 euros and 130,000 of its shares to the Finnish seller during the study, and will spend up to 250,000 euros each year on exploration.

When the study is completed, 150,000 more shares will be handed over to the Finnish company and European Diamonds has also agreed to pay a royalty of between 1.25 percent and 3.5 percent of the revenues from any diamonds produced.

Lahtojoki is part of the Karelian Craton that spans eastern Finland and northwest Russia and is considered a potentially rich area for diamonds.

European Diamonds said the property contains a kimberlite where gems of up to one carat have been recovered since the early 1990s.

European Diamonds also owns diamond projects in Lesotho and is one of an increasing number of companies searching for diamonds outside the traditional diamond areas of southern Africa.