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EHR Resources to acquire Canada-based Nanuk Diamonds

EHR Resources Ltd. agreed to acquire Nanuk Diamonds Inc., which owns 625 mineral claims in northern Quebec.

The company will pay A$1 million for the purchase by issuing 20 million common shares at a deemed price of 5 Australian cents per share.

Nanuk Diamonds is owned by Prospect AG Trading Pty. Ltd., a company associated with EHR director and 11.08% owner Michael O'Keeffe, and 9064-6316 Quebec Inc.

If the acquisition is approved by shareholders, O'Keeffe's shareholding in EHR will increase to 16.39%.

Peter Ravenscroft will join EHR's board as part of the deal.

The acquisition represents "an excellent, low-cost point of entry" into the diamond sector for EHR, Chairman Stephen Dennis said. The company, however, retains its 18% interest in the La Victoria gold project in Peru.