Gem International Resources Inc (CVE:GI) has announced that is to raise C$400,000 through the sale of 8 million units, with each unit consisting of one share and one warrant, with each warrant exercisable at C$0.15 over a 2 year period.
The financing comes as Gem renegotiates the terms of an existing arrangement with longstanding associate in Angola, Global Gems.
Global Gems owns a 45% interest in the Dala diamond project in the north east of the country.
Under proposals not yet agreed to, the scope of the Dala project may now be enlarged to include exploration and exploitation rights for six known kimberlite pipes. Gem would then acquire 88% of Global Gems for a series of staged payments, and would also commit to exploration expenditure of US$13mln.