MONTREAL, QUEBEC--(Marketwire - Dec. 14, 2010) - Big Red Diamond Corp. (TSX VENTURE:DIA) (the "Company" or "Big Red") is pleased to announce the signature of an acquisition agreement for a 100% interest in the Kipawa Rare Earth property. The property, located approximately 100 kilometres south of Rouyn-Noranda, halfway between the Elliot Lake camp and the Abitibi gold belt camp is composed of 26 claims covering an area of 1,524 hectares.
The acquisition terms call for Big Red to make a cash payment of $5,000 and issue to Vanstar Resources Inc. (TSXV: VSR) ") 300 000 common shares - of this amount, 150,000 commons shares will be subject to the standard regulatory hold period of four (4) months following the TSX approval and 150,000 common shares will be subject to an eight (8) month hold period.
The property will be subject to a 1% NSR of which one half can be bought back in exchange for a payment of $250,000.
The Kipawa Rare Earth property, an early stage exploration property, is located approximately 15 km north of Aurizon Mines (TSX: ARZ). Kipawa Gold-Rare Earth Elements property. Aurizon has conducted some fairly extensive exploration and drilling work on their property and have reported interesting rare earth elements showing ( see February 16, 2009 press release). We would like to caution readers that the mineralization of Aurizon's property may not necessarily be indicative of mineralization that may be identified on our property. The specific details of Big Red's Kipawa REE mineralogy are presently unknown. A summer program will be put in place for preliminary samples and exploration.
With our recent BC Rare Earth Property claims acquisition and this latest Quebec based Rare Earth property acquisition coupled with our existing J6L1 Rare Earth project in Sept-Iles, Quebec, we believe that our current land holdings position Big Red extremely well for a diversified play into rare earth elements.The proposed transaction is subject to TSX Venture Exchange approval.