Explorer Botswana Diamonds has concluded an agreement with mining and resource development company Vast Resources for the development of its concessions in the prolific Marange Diamond Fields (MDF) of eastern Zimbabwe.
A separate agreement will cover the joint development of diamond properties outside of the MDF, which will be a straightforward 50:50 joint venture (JV), though the initial focus of the joint work is on the MDF.
Vast has exclusive access to key diamond concessions in the MDF of the Chiadzwa region of eastern Zimbabwe through an agreement with a community organisation.
Botswana Diamonds will perform due diligence on the area to conclude a JV agreement for diamond exploration, mining and marketing.
The 15 km2 Heritage concession borders on Vast’s historical MDF claim and seems to be a geological extension of that system.
To develop diamond properties in Zimbabwe, Botswana Diamonds and Vast signed a memorandum of understanding in May, which has now matured into an agreement on the MDF.
This includes the establishment of a special-purpose vehicle (SPV) between Botswana Diamonds and Vast to develop diamond resources in the MDF.
Botswana Diamonds will initially hold 13.33% of the SPV and Vast 86.67%. Vast will contribute $1-million in initial funding, with any additional funds to be sourced through an equity raise.