Striker In Agreement to Buy Merlin Mine from Rio Tinto
March 31, 04
Striker Resources has signed a preliminary agreement with Ashton Mining, a wholly owned subsidiary of Rio Tinto, to acquire 100 percent of the Merlin Diamond Mine in the Northern Territory of Australia.
If it gets the green light, Striker will pay $2 million at the commissioning of a mine and Ashton will have an option to take back a 51 percent interest.
The Merlin Diamond Mining Lease includes 11 of the 13 known kimberlite pipes, of which nine were subject to open-pit operations, producing around 500,000 carats of diamonds with an average value of more than $100 per carat. Two pipes with potential economic ore grades are still to be assessed.
Ashton will receive a one percent gross revenue royalty on mineral production, but not if it buys back a 51 percent interest in the project.
If it does reacquire a 51 percent interest in the project, Rio Tinto will have commercial marketing rights to production of all diamonds, otherwise Striker will market its own production.