LAHTOJOKI DIAMOND PROJECT – MINING PERMIT ACQUIRED
A diamond mining permit has been acquired over the Lahtojoki diamond project in Finland.
The Lahtojoki diamond project is situated in the Kuopio – Kaavi region of Finland in a highly favourable location with excellent infrastructure including good road access, power distribution and local technical and logistics availability.
Drilling and bulk sampling information to date together with other technical information indicate that the Lahtojoki diamondiferous kimberlite pipe has the potential to become a profitable open pit diamond mine
Karelian believes that the Lahtojoki diamondiferous kimberlite pipe has the potential to become a profitable low strip ratio open pit diamond mine.
The Lahtojoki diamond deposit development would be the first diamond mine in Europe, outside Russia
The diamond mining permit together with all claim reports and additional technical material was acquired from A&G Mining Oy (“AGM”). The purchase price was €150,000, comprising an initial purchase price of €50,000 plus a further €100,000 after twenty four (24) months unless Karelian decides not to develop the project. A royalty to AGM of 1% is payable either in diamonds or cash on diamond production up to 2.5 million carats and 2% payable on diamond production above 2.5 million carats.
The acquisition of the valid Mining Permit over the Lahtojoki project area will allow the Company, should it so decide, and subject to any relevant environmental assessments or requirements, to proceed through to the development of the project.
Finland has a well-developed mining industry and is highly ranked for mining investment attractiveness in the prestigious Fraser Institute rankings for mining jurisdictions worldwide.