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EHR enters into diamond exploration alliance agreement in Botswana

9th June 2020

By: Tasneem Bulbulia

Senior Contributing Editor Online

     

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ASX-listed EHR Resources has entered into an exploration alliance agreement with Diamond Exploration Strategies (DES), a privately owned company focused on diamond exploration in Botswana.

Under the terms of the agreement, EHR will provide funding of $1.5-million over three years to finance exploration activities and earn 50% ownership of any discoveries made.

The alliance is initially over five areas that have existing prospecting licences, but extends to cover other prospective areas of Botswana that may be identified.

Using a project generator model, DES will perform all exploration activities using alliance funding.

If a promising discovery is made as a result of these activities and accepted by the joint technical committee as a designated project, the project will be initially owned 50% by EHR and 50% by DES, otherwise the project will remain owned by DES.

EHR then has the option to sole fund a scoping study on a designated project to earn-in to a 70% ownership interest, with a further option to reach a 90% ownership interest by sole funding a feasibility study.

“We are very pleased to form this alliance with DES who have an excellent team with a proven record in diamond exploration and discovery in Botswana.

"The alliance provides EHR with turn-key entry into one of the world’s leading diamond  jurisdictions with an experienced local shareholder. EHR shareholders gain immediate exposure to any potential discoveries, and have a path forward to share in further development of any new diamond projects,” says EHR MD Peter Ravenscroft.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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