It has been a very busy few months for Indicator Minerals (TSX-V:IME), the junior diamond and emerald exploration and development company with interests in Canada and Colombia.
In the past few weeks, the company has managed to settle a dispute with Peregrine Diamonds related to the Nanuq North Project, and announce a $2 million exploration which will be jointly funded by the two companies.
This was a major milestone for Indicator Minerals, as past drill results on the NQN-001 kimberlite has highlighted the need for larger bulk samples to assess the commercial potential of the 4.5 hectare pipe. Investors certainly understood the significance of the news, pushing the company’s share price from 9 cents to 18 cents in just few days.
Drilling is scheduled to begin in May, and is expected take four to six weeks to complete. Indicator believes the drill campaign will recover at least 3,500 kg of kimberlite core, and will improve their understanding of the size, distribution and number of phases in the pipe.
Financing for the exploration program is in place, after the company raised $1.4 million from investors through the issue of approximately 5.985 million flow-through units at a price of 10 cents per flow-through unit and 10.3 million non-flow-through units at a price of 8 cents per non-flow-through unit.
Each flow-through unit is comprised of one flow-through common share and one share purchase warrant exercisable to acquire one common share at a price of 15 cents per share. Each non-flow-through unit is comprised of one common share and one share purchase warrant exercisable to acquire one common share at a price of 12 cents per share.
While the market will be keen to see additional results from NQN-001, the company has also confirmed it will be moving ahead with a transaction that will give it a foothold in South America’s emerald industry.