The new arrangement will add $100,000 in cash to Tres-Or's treasury and another $200,000 from Kiboko will be used to pay a $200,000 debt owed to Globex Mining Enterprises Inc. (GMX: $1.01). Further, Tres-Or is to receive $350,000 in cash and $1.5-million of Kiboko's stock once that company completes a $3-million initial public offering.
Ms. Duffett, Tres-Or's president and chief executive officer, says that the Kiboko shares will be passed along to Tres-Or's shareholders. The rejigged deal with Kiboko and the share disposition will allow Tres-Or to "complete the separation of Tres-Or's gold property assets from its current diamond property assets" -- which will leave the company focused entirely on its Guigues diamond project, just northeast of Lac Temiscamingue in northwestern Quebec.
Tres-Or, which closed unchanged at 11 cents on 1,000 shares Thursday, wrapped up its latest drill program at Guigues in mid-November, completing five 300-metre holes and recovering over 10 tonnes of kimberlite for macrodiamond recovery. Guigues previously produced a smattering of microdiamonds, but such stones have been unusually poor predictors for the grade of Ontario diamond deposits, so Ms. Duffett is looking to recover stones larger than 0.425-millimetre from the rock using less expensive methods -- and the cash from the Kiboko deal should help cover the cost.