Lithoquest Diamonds Inc (CVE:LDI) has closed the first tranche of a non-brokered private placement, raising C$978,000 to advance the North Kimberley Diamond Project in Western Australia.
The TSX Venture Exchange has granted conditional approval for the placement and the company has issued 9.7 million shares at C$0.10 per share.
“Well prepared for 2019 drilling program”
Lithoquest chief executive officer Bruce Counts said: “Lithoquest appreciates the continued support of its largest shareholders to advance the Kimberley Diamond Project.
“The company is well prepared for the 2019 drilling program and management is optimistic that results from will lead to the discovery of diamond bearing kimberlites.”
Lithoquest has paid aggregate cash finder’s fees of $40,980 to two arm’s lengths finders, representing 6% of the proceeds from subscriptions by certain places introduced by the finders.
The company also granted a net smelter royalty on the company’s interest in the North Kimberley Diamond Project to participants at the ratio of 1% per 1,000,000 of gross proceeds.
Around 20 priority targets defined
Lithoquest discovered kimberlite on its first drill program at the North Kimberley project, in the state’s north, in 2018.
After completing a detailed review of data, the company defined 20 priority targets during a field program in April.
Three sets of criteria were used to select the priority targets:
- The presence of kimberlite indicator minerals;
- Geophysical anomalies; and
- Areas of interest resulting from a geospatial analysis designed to detect kimberlites.
Key highlights of the project include:
- 1,500 square kilometres of project area;
- 20 priority targets defined by a two-phase field program;
- Gem quality diamonds recovered from documented steam samples throughout the area, including a 1.73 diamond with 3 micro diamonds found in a 10-kilogram sample;
- Access by a seasonal road and is positioned on tidewater.
Another field program is scheduled for late August or early September.