- EHR Resources (EHX) has completed its acquisition of Nanuk Diamonds
- The company’s shareholders approved the transaction on March 9, 2020
- EHR now owns 625 mineral claims, located east of Ungava Bay in Northern Quebec
- The area has been largely unexplored for the last 15 years but may contain several diamond-bearing formations
- EHR Chairmain Stephen Dennis said that work at Nanuk would progress in the second half of 2020
- EHR’s share price remains unchanged and is trading flat at 7.6 cents apiece
Exploration and mine development company EHR Resources (EHX) has completed the acquisition of Canadian-based Nanuk Diamonds Inc.
The company first announced its plan to acquire Nanuk Diamonds from Prospect AG Trading in December of last year. EHR Resources’ shareholders met and approved the acquisition transaction on March 9, 2020.
Having acquired 100 per cent of Nanuk Diamonds, EHR is now the owner of 625 mineral claims in Northern Quebec. The 274 square kilometre area, located east of Ungava Bay, has rare diamond mining potential.
EHR’S newly acquired space contains several occurrences of diamond-bearing kimberlite dykes. Kimberlite, also known as “blue ground”, is a rare rock form that solidifies in lava or magma, and sometimes contains diamonds.
While the sheets of kimberlite rock were originally discovered in the early 2000s, they have been left unexplored for over ten years.
EHR’s Managing Director and CEO, Peter Ravenscroft, who joined the company board in December last year, said he was pleased to have closed the transaction.
“We shall continue to evaluate ongoing work programs in this area, along with other diamond exploration investments that we are considering,” Peter explained.
In the company’s December announcement, EHR Chairmain Stephen Dennis said that work at Nanuk would progress in the second half of 2020.
Yesterday, EHR’s share price rose gradually throughout the day, but suddenly lost all of its gains in the afternoon. As such, EHR’s share price remains unchanged and is still trading flat for 7.6 cents per share.