Dianor Resources Inc.
TSX VENTURE : DOR

Dianor Resources Inc.

April 04, 2007 16:30 ET

Dianor Increases Interest in the World's Oldest Diamond Deposit-The Leadbetter and Leadbetter Extension Diamond Properties

VAL-D'OR, QUEBEC, CANADA--(CCNMatthews - April 4, 2007) - THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Dianor Resources Inc. (TSX VENTURE:DOR) is pleased to inform its shareholders that it has completed negotiations with the vendors of the Leadbetter and Leadbetter Extension Properties (see press releases dated December 13, 2004 and March 2, 2005) for the right to acquire an additional ten percent (10%) undivided interest in each of the optioned properties. As a result, Dianor has the right to acquire a 90% undivided interest in the Leadbetter property and an 80% undivided interest in the Leadbetter Extension property, thereby also reducing future Gross Overriding Royalties (GOR) payable under the various option agreements.

Dr. John Ayers of the Ontario Geological Survey and Dr. Mike Hamilton of the University of Toronto have dated a felsic tuff interbedded within the Leadbetter Conglomerate as being 2.697 billion years old. Similar tuffs intersected in drill holes are diamond bearing (see press releases dated February 16, 2007, November 7, 2006 and April 25, 2006). This dating makes the deposit the oldest in the world, pre-dating the previous oldest diamond rocks, also in the Wawa area, by 20 million years. It is also a unique diamond deposit in that in addition to diamonds, it contains gold, sapphires and rubies (see press release January 18, 2007). Numerous diamond indicator minerals are also present in the Leadbetter Conglomerate and the morphology of the grains indicates proximity to primary source rocks. The diamond bearing Conglomerate outcropping on the Mori/Metallex/Dianor joint venture property is the eastern extension of the Leadbetter conglomerate and is believed to be the same age.

The consideration and terms of the right to acquire an additional ten percent (10%) undivided interest in each of the Leadbetter and Leadbetter Extension properties are based on two independent evaluations. Under the terms of the agreement, Dianor will pay the vendors an aggregate consideration of eight million dollars ($8,000,000) over a maximum period of 40 months from the date of signature of the agreement and ending no later than August 1, 2010 as follows: (i) pay six hundred thousand dollars ($600,000) cash within 15 calendar days from the date of signature of the agreement; and (ii) pay the remaining seven million four hundred thousand dollars ($7,400,000), half in cash and half in common shares of Dianor, in equal tranches over the remaining 40-month period. In addition, Dianor will issue 1,000,000 common share purchase warrants with an exercise price of $0.87 per share, representing a premium on the closing price of the common shares of Dianor on the date of signature of the agreement. The warrants will be valid for a period of three years.

The agreement is subject to all regulatory approval, including that of the TSX Venture Exchange.

Dianor is an innovative exploration company focused on advancing diamond exploration properties in Canada. The Leadbetter Diamond Project is its most advanced project and is located 12 kilometres north east of Wawa in Northern Ontario.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

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

Contact Information

  • Dianor Resources Inc.
    Mr. John Ryder, P.Geo
    President
    819-825-7090
    819-825-7545 (FAX)
    info@dianor.com
    or
    Dianor Resources Inc
    Mr. Daniel Duval
    Chairman of the Board
    819-825-7090
    819-825-7545 (FAX)
    info@dianor.com
    You can also visit our Web Site: www.dianor.com
    or
    Renmark Financial Communications
    Mr. Jason Roy
    514-939-3989
    514-939-3717 (FAX)
    jroy@renmarkfinancial.com