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, though the initial focus of the joint work is on the MDF.
As previously announced, 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 neighbours Vast’s historic MDF claim and seems to be a geological extension of that system.
To develop diamond properties in Zimbabwe, Botswana Diamonds and Vast in May signed a memorandum of understanding, 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.
Further, Botswana Diamonds and Vast may contribute to any future equity raise on a pro rata basis, and if either party does not take up its allocation, the other may.
The next step is a desktop review, which is now under way.