TSXV-listed diamond explorer Pangolin Diamonds Corp. has finalised its joint venture agreement with privately-owned Botswana incorporated, Makanwu Civil Blasting, and now owns a 75% interest in the diamondiferous AK10 diamond project in Botswana – just 4 km from the now famous AK06/Karowe mine.
Pangolin Diamonds Corp. announced in April 2018 the signing of an agreement under which it has the option to enter into a joint venture with Makanwu Civil Blasting after it has evaluated the geological merits of the AK10 kimberlite.
Under the joint venture agreement, Makanwu Civil Blasting has granted Pangolin Diamonds Corp. the sole and exclusive option to earn up to a 75% interest in respect of Makanwu Civil Blasting’s precious stone AK10 diamond project located in the Central District of Botswana.
Moreover, Pangolin Diamonds Corp. has also entered into a memorandum of understanding with Amulet Diamonds Corporation, a company formed under the laws of the Province of Ontario, Canada. Amulet Diamonds Corporation is currently evaluating the BK11 kimberlite, approximately 2.9 km to the east of the AK10 kimberlite. The geographical location of AK10, relative to the position of kimberlite 2125B/K11 (BK11), allows for natural and mutual synergies with respect to the future development of AK10.
The two parties have agreed that Amulet Diamonds Corporation should consider making available its small bulk sampling processing plant for the processing of bulk sampling material from AK10. The availability of the small bulk sampling plant to Pangolin Diamonds Corp. will be subject to a separate and specific commercial agreement to be negotiated.
The parties have further agreed that Amulet Diamonds Corporation will be offered the opportunity to participate with Pangolin Diamonds Corp. on its share of AK10 in the JV on AK10 after it has exercised its option to enter into the joint venture with Makanwu Civil Blasting on the AK10 kimberlite.
The terms of such participation will recognise the terms of those already agreed between the joint venture partners and the participation of Amulet Diamonds Corporation on AK10 will be subject to a separate and specific commercial agreement to be negotiated. Amulet Diamonds Corporation will also be required to fund its participation in the joint venture.
In addition, the parties have agreed that Amulet Diamonds Corporation will have a first right of refusal in the event that Pangolin Diamonds Corp. decides to divest in its interest in the AK10 diamond project.