Canadian exploration company Shear Minerals Ltd. has signed a final Option and Joint Venture Agreement with Rio Tinto Exploration Canada Inc. to explore and advance the 70,000 acre Chesterfield Inlet diamond project in Nunavut. The project comprises a group of 35 mineral claims located within and near the North Corridor of the larger Churchill Diamond Project. 

In the fall of 2009 a prospecting program was completed at the Project and budgets are currently being finalized for the 2010 summer season, says Shear Minerals.

The terms of the agreement stipulate that Shear, which owns 62.78% of the project, and Vancouver-based Stornoway Diamond Corporation, which owns the remaining 37.22% of the project, have jointly granted Rio Tinto the right and option to acquire, subject to all underlying royalties, up to a 70% interest in all mineral rights to the Project, says Shear.  Rio Tinto has a First Option to acquire a 51% interest in the project by incurring exploration expenditures of $100,000 before December 31, 2010 and an additional $1,900,000 in exploration expenditures before December 31, 2012, says the company.  If the First Option is exercised, Rio Tinto has an option to complete a Second Option whereby Rio Tinto can earn an additional 19% interest in the Project by incurring an additional $4,500,000 in exploration expenditures before December 31, 2016.  Shear will be the operator during the First Option.