Skip to main content
Client Work

De Beers Canada and Pure Gold Minerals sign joint venture agreement to explore property portfolio in Nunavut

Reading Time 2 minute read Subscribe



De Beers Canada Inc.

On May 17, 2006, Pure Gold Minerals Inc. announced that it had entered into an agreement with De Beers Canada Inc. to earn up to an 85% working interest in six projects in Nunavut. The properties within the 'High Arctic Portfolio' comprise 10.8 million hectares (26.8 million acres). The option agreement requires Pure Gold to spend $5 million on exploration of the properties in each of the years 2006, 2007 and 2008 and the issuance to De Beers up to 17.5 million shares subject to certain lock-up requirements, and the acquisition by De Beers of 10 million units of Pure Gold on a private placement basis. Each unit consisted of a common share and one-half of one common share purchase warrant, exercisable at a price of $0.12 per share for a period of two years. De Beers also has the option, if Pure Gold elects to proceed with the second and third years of the option agreement, to complete a further private placement of 5 million units under similar terms at the market price of the common shares at the time of the issuance of these units. De Beers will continue to operate the projects on behalf of the parties under the supervision of the Technical Management Committee, and has the right to appoint members to the board of directors of Pure Gold commensurable with De Beers' percentage common shares ownership of Pure Gold. Over a certain threshold value De Beers has a back-in option to acquire an undivided 70% interest in the Properties with Pure Gold having a 30% interest. De Beers Canada was advised in this agreement by a team from Fasken Martineau led by Robert Shirriff and including Robert Eberschlag.


    Receive email updates from our team