Doug Ashbury
Northern News Services

Yellowknife (Oct 02/00) - Deton'Cho Diamonds is looking for more shareholders to invest in the company.

The company's CEO Darrell Beaulieu says it's an opportunity to buy into the diamond business.

"DDI (Deton'Cho Diamonds Inc.) is selling preferred shares," he said Thursday.

Deton'Cho Diamonds operates a new diamond-cutting and polishing plant in Ndilo. Stones from the Ekati diamond mine are processed at the plant.

The company's majority owner is Deton'Cho Investments North, which is wholly-owned by the Yellowknives Dene's Deton'Cho Corp.

Deton'Cho Diamonds is one of several Yellowknives Dene economic development companies.

"It's an investment for the long-term," added Beaulieu, who is also Deton'Cho Diamonds president.

"It's another way of raising capital."

Beaulieu spoke Thursday at the Council for the Advancement of Native Economic Development Officers' annual meeting held in Yellowknife.

Deton'Cho is not making a public offering of shares. Shares sold would be non-voting, and the company expects buyers will be eligible for the GNWT's risk capital investment tax program, said Beaulieu.

The risk capital investment tax program gives NWT-based investors a tax credit.

If, for example, an NWT resident buys $10,000 worth of shares in a company registered with the program, that individual gets a $3,000 income tax credit. Individuals get a 30 per cent credit while NWT businesses are eligible for 15 per cent credit. The program was announced about 18 months ago.

As well as the share-purchase component, a fund can be set up to sell shares to individuals, and invest in NWT companies.

But John Munroe, GNWT fiscal policy director, says no investment funds have yet been set up.

Only three companies have so far completed the registration process.

And Deton'Cho Diamonds is not among the firms that completed the registration requirement, according to the GNWT's published list of eligible companies.

One of the requirements is a minimum of five investors.

Deton'Cho Diamonds will host a grand opening Oct. 12 at the diamond cutting plant in Ndilo.

The company currently employs 23 people, and peak employment is anticipated to be 45 people.

Deton'Cho Corp. is still a young corporation and still developing. The corporation plans to play an active role, as opposed to passive participation, in its companies, said Beaulieu.