Confidence in Zimbabwe and its new regime is clearly growing as two companies form a partnership to explore for diamonds in the country.

AIM/BSE-listed diamond junior Botswana Diamonds has signed a Memorandum of Understanding with AIM-listed gold miner Vast Resources to:

1) exchange information derived from past exploration on areas prospective for diamonds in Zimbabwe; and

2) form a special purpose vehicle, to be jointly owned by each company, for the purpose of developing and exploiting diamond resources in the country.

Any diamond exploration programmes in South Africa’s neighbouring country will be carried out in accordance with Zimbabwe’s joint ownership laws in relation to diamonds.

As announced on 19 September 2008, Vast Resources acquired, at that time, a database relating to diamonds in Zimbabwe.   It has also, until 2010, carried out its own exploration in the field using information from the database.

Botswana Diamonds has independently acquired a Zimbabwe diamond database and, along with its significant networks, has expertise in diamond exploration, development and mining.

“Zimbabwe is a country with excellent diamond potential.  Both Botswana Diamonds and Vast Resources have extensive experience in and knowledge of the country.  It is opening for business and both companies are keen to make the most of this opportunity,” says John Teeling, Chairman of Botswana Diamonds.

“As a result of the new government’s desire to open up business in the country we believe the time has now come for us to make use of our historic diamond knowledge with a view to bringing value for all stakeholders in developing Zimbabwe’s diamond resources. We are delighted to be working with Botswana Diamonds in order to achieve this,” adds Andrew Prelea, Chief Executive of Vast Resources.