Big Red Diamond Corporation

Big Red Diamond Corporation

September 16, 2009 09:00 ET

Big Red Diamond Signs a Letter of Intent for the Sale of Its Strategis Property With Virginia Energy Resources

MONTREAL, QUEBEC--(Marketwire - Sept. 16, 2009) - Big Red Diamond Corporation (TSX VENTURE:DIA), ("Big Red") is pleased to announce that it has signed a Letter of Intent ("LOI") for the sale of its Strategis uranium property in the Otish Basin to Virginia Energy Resources Inc. (TSX VENTURE:VAE), ("Virginia").

Under the terms of the agreement, Virginia can acquire a 100% interest in the Strategis property subject to a 2% Net Smelter Royalty interest in favour of Big Red and certain underlying vendors, of which 1.5% can be bought back at any time by payment of $1.5 million. To earn its interest, Virginia must pay $50,000 on signing and issue $180,000 in shares within four months after signing. Big Red agrees to finance an approved work program of prospecting, soil sampling and ground geophysics on the property, which will commence immediately.

Big Red considers the sale of its Strategis uranium property of significant interest to Virginia as it intends to focus on the exploration of its gold properties in Timmins.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Big Red Diamond Corporation
    Jean-Francois Perrault
    President & CEO
    514-288-7750 (FAX)