Owner
Post by Franko10 ™ on Dec 18, 2007 13:41:00 GMT -5
Property 1000 Juína Mining Mineração Ltda. Joint Venture
Pursuant to a joint venture agreement dated October 19, 2000 and August 14, 2003, the Company has a 51% interest in Juína Mining Mineração Ltda. (“JMML”), a joint venture with the Juína Mining Corporation (“JMC”), a US registered public company.
JMML explores for alluvial and hard rock sources of diamonds on a property of approximately 760 hectares, called “Property 1000”. The terms of the agreement require the parties to fund the project in proportion to their respective interests. Management of the joint venture is conducted through a Joint Venture Management Committee, with each party having equal participation. The Company, as operator, conducts the work programs approved by this committee. In the event that either party is unable to contribute its share of cash calls, its ownership interest will be diluted on a proportional basis, with a provision for an accelerated dilution in the event of the defaulting parties’ interest falling below 10%. In the prior year, the Company and JMC amended the terms of the joint venture providing Diagem with operating control over the Joint Venture Management Committee. The Company committed to convert an excess contribution to JMML of US$98,000 into 1,800,000 shares in JMC, once outstanding operating permits are issued. No contributions have been converted to shares of JMC.
During the year ended June 30, 2005, the Company submitted to the DNPM its final exploration report for the property. The activities on the property have been restricted since 2002 due to an IBAMA embargo. On April 26, 2006, the DNPM informed the Company it had approved the report for the property which included a reduction in size to approximately 760 hectares of the mineral right.
The decision to write off the JMML-related balances was to conservatively follow the Canadian Institute of Chartered Accountants Accounting Guideline 11 Enterprises in the Development Stage in light of the lack of activity on that property in the last three years and the IBAMA embargo. An environmental impact report has been completed and filed with SEMA in February 2007. Management has requested to the DNPM deferral of its plan to apply for a mining concession, as permitted by Brazilian legislation, while aiming to have the IBAMA embargo lifted.
Pursuant to a joint venture agreement dated October 19, 2000 and August 14, 2003, the Company has a 51% interest in Juína Mining Mineração Ltda. (“JMML”), a joint venture with the Juína Mining Corporation (“JMC”), a US registered public company.
JMML explores for alluvial and hard rock sources of diamonds on a property of approximately 760 hectares, called “Property 1000”. The terms of the agreement require the parties to fund the project in proportion to their respective interests. Management of the joint venture is conducted through a Joint Venture Management Committee, with each party having equal participation. The Company, as operator, conducts the work programs approved by this committee. In the event that either party is unable to contribute its share of cash calls, its ownership interest will be diluted on a proportional basis, with a provision for an accelerated dilution in the event of the defaulting parties’ interest falling below 10%. In the prior year, the Company and JMC amended the terms of the joint venture providing Diagem with operating control over the Joint Venture Management Committee. The Company committed to convert an excess contribution to JMML of US$98,000 into 1,800,000 shares in JMC, once outstanding operating permits are issued. No contributions have been converted to shares of JMC.
During the year ended June 30, 2005, the Company submitted to the DNPM its final exploration report for the property. The activities on the property have been restricted since 2002 due to an IBAMA embargo. On April 26, 2006, the DNPM informed the Company it had approved the report for the property which included a reduction in size to approximately 760 hectares of the mineral right.
The decision to write off the JMML-related balances was to conservatively follow the Canadian Institute of Chartered Accountants Accounting Guideline 11 Enterprises in the Development Stage in light of the lack of activity on that property in the last three years and the IBAMA embargo. An environmental impact report has been completed and filed with SEMA in February 2007. Management has requested to the DNPM deferral of its plan to apply for a mining concession, as permitted by Brazilian legislation, while aiming to have the IBAMA embargo lifted.
