MONTREAL, QUEBEC--(Marketwire - March 5, 2010) - Big Red Diamond Corporation ("Big Red") (TSX VENTURE:DIA) is pleased to announce the sale of its Strategis Property to Virginia Energy Resources Inc. ("Virginia") (TSX VENTURE:VAE).
Under the terms of a final assignment agreement signed February 24, 2010, Virginia has now acquired a 100% interest in the Strategis property comprising 5100 hectares of map designated claims in 97 cells, located in the Otish Mountains, Quebec. The property is subject to a 2% Net Smelter Return royalty interest in favour of Big Red and certain underlying vendors, of which 1.5% can be bought back at any time by payment of $1.5 million. Virginia previously paid $50,000 cash as part of a September 2009 option agreement, and has now issued 635,000 common shares to complete the acquisition.
About Big Red Diamond Corporation
Big Red Diamond Corporation is a junior exploration company with exploration projects in the West Timmins Gold camp and rare earth elements property near Sept-Iles, Quebec. The Company is also a joint-venture partner with Metalex Ventures in the Attawapiskat diamond project in the James Bay Lowlands, surrounding De Beers' Victor diamond deposit.