CityView updates Angolan Diamond Projects

Australia-based holding company CityView Corporation announces that Endiama, the Angolan National Diamonds Company, acknowledge the grant to CityView of the exclusive right to acquire 100% of Canzar Resources plc (”Canzar”), the holders of a 41% legal and beneficial interest in 3 kimberlitic diamond concessions. The concessions are Caufo, Luachisse and Nheffo. CityView has paid US$1,030,000 as a 135 days option and shut out fee to purchase 100% of Canzar at a price to be determined on a fair value basis during the due diligence and independent valuation process. Local business groups in Angola have indicated their wish to participate in the raising of the requisite capital.

Endiama has agreed to enter into a long term operating agreement with Canzar on Caufo, Luachisee and Nheffo and will guarantee for the first four years a minimum net income to Canzar of US$12.5 million per annum. Production is planned to start on Nheffo and Luachisse by 2009. Endiama have confirmed that if any of the nominated kimberlites are not commercially viable, they will be replaced with other commercially viable kimberlites.

The acquisition of Canzar will complement CityView’s resources acquisition program in Angola, viz strategic holdings in oil, gold, diamonds, copper and rare earths.

Story link: CityView updates Angolan Diamond Projects