Diamond explorer Botswana Diamonds has concluded an agreement with AIM-listed Vast Resources which has set in motion the development of their concessions in the prolific Marange Diamond Fields of eastern Zimbabwe.
Meanwhile, a separate agreement will cover the joint development of diamond properties outside of the Marange Diamond Fields (MDF), which will be a straightforward 50/50 joint venture, though the initial focus of the joint work is on the MDF.
Vast Resources, 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 joint venture agreement for diamond exploration, mining and marketing.
The 15 km² Heritage Concession neighbours Vast Resources’ historic MDF claim, and seems to be a geological extension of that system.
To develop diamond properties in Zimbabwe, Botswana Diamonds and Vast Resources signed a MoU in May 2018, which has matured into an agreement on the MDF, including:
- A special purpose vehicle between Botswana Diamonds and Vast Resources to develop diamond resources in the MDF;
- Initial shareholdings will be Botswana Diamonds – 13.33% and Vast Resources – 86.67%;
- Vast Resources will contribute up to US$1 million as initial funding;
- If any additional funds are required, this will be via an equity raise;
- Botswana Diamonds and Vast Resources may contribute to any future equity raise on a pro rata basis. If either party does not take up its allocation, the other may.
“I am delighted that we have concluded terms with Vast Resources on developing their concessions within the prolific Marange Diamond Fields,” comments Botswana Diamonds chairman John Teeling.
“We look forward to working with them to realise the full potential of this prospective area and others, as they emerge, with Zimbabwe opening up further for business.
“Work on the initial due diligence is far advanced,” he concludes.