European Diamonds made an offer for Gold Fields to look for gold on the UK company's properties in central Finland. As a result a successful deal was done.
Under deal’s terms Gold Fields is to spend at least $4.25m over the next three years for gold exploration on European Diamonds' properties in Finland and will subscribe £1.8m for a 5 percent stake in the UK company. Additionally, Gold Fields will have an option to take another 5 percent of European Diamonds annually for a further three years.
European Diamonds keeps 100 percent of its diamond operations as well as 25 percent of any gold deposit discovered. The £1.8m injection from Gold Fields will enable European Diamonds to be much more aggressive in the diamond exploration at its Lentira property in central Finland.
European Diamonds, during the course of diamond exploration work it discovered indications of extensive gold mineralisation on its properties and contracted the Geological Survey of Finland to undertake a review of these occurrences.
Now the UK company believes its properties may have potential for significant gold deposits
The choice of the city of Helsinki is not incidental as the capital of Finland had hosted US-Soviet negotiations on the limitation of nuclear stockpiles in 1969