Australia's EHR Resources gains on deal to earn stake in diamond project in Canada

North Arrow Minerals

02/06/2020 04:51

** Shares of EHR Resources Ltd  EHX.AX  gain as much as
14.3% to A$0.120 - highest since May 25
    ** The gold and base metals explorer signs option agreement
with Canada-listed North Arrow Minerals Inc  NAR.V  to earn 40%
interest in Naujaat diamond project  urn:newsml:reuters.com:*:nFWN2DE0TN
    ** Company says interest in the project will be earned in
return for funding of ~C$5.6 mln ($4.13 mln) for preliminary
bulk sample extraction of 1,500–2,000 tonnes in 2021
    ** EHR made a preliminary proposal to increase its interest
to 60% in the Project
    ** Stock posts biggest intraday percentage gain since May 25
    ** About 582,000 shares change hands, compared with 30-day
average of ~164,000 shares
    ** Stock up 64.1% this year, as of last close
       
($1 = 1.3563 Canadian dollars)

 (Reporting by Aditya Munjuluru in Bengaluru)
 ((aditya.srivastsav@thomsonreuters.com))