Northern News Services

NNSL (Jun 08/98) - Aber Resources Ltd., 40 per cent owner of the Diavik diamond project, has netted $98.6 million from a common share offering, the resource company said.

Seven million shares were bought at $14.70 each by a syndicate of underwriters led by Bunting Warburg Inc.

Aber said with about $130 million in working capital, it is "financially well-prepared for a production decision on Diavik which is estimated to cost $875 million plus or minus 25 per cent."

Investment firms First Marathon Securities, RBC Dominion Securities, Deacon Capital and Canaccord Capital also bought shares in the offering.

Diavik's final feasibility study, currently under way, is to be completed in the fourth quarter of 1998.

Diavik, 60 per cent owned by Diavik Diamond Mines Inc., is anticipated to be in production late 2001 or early 2002. Diavik Diamond Mines is a wholly-owned subsidiary of Rio Tinto.

Fully operational, Diavik is expected to yield six to eight million carats each year. Life of the proposed mine is estimated at 16 to 22 years.