Harare – 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, according to a statement by Botswana Diamonds chairman John Teeling.
Teeling said there also had separate agreement with Vast Resources which 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.
In August this year, Vast Resources concluded an agreement with Red Mercury (Pvt) Ltd for exclusive access to the Heritage concession area which is popularly known as the MDF in the Chiadzwa region of Zimbabwe.
Red Mercury is a company owned by the Marange-Zimunya Community Share Ownership Trust (MZ Community Trust), which is registered as a Community Share Ownership Trust under the laws of Zimbabwe and which has received an undertaking from the Government of Zimbabwe for a licence to mine on the Heritage Concession.
According to the statement, Botswana Diamonds will perform due diligence on the area to conclude a joint venture agreement for diamond exploration, mining and marketing.
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, special purpose vehicle between Botswana Diamonds and Vast Resources to develop diamond resources in the MDF; initial shareholdings will be Botswana Diamonds - 13.33 percent and Vast Resources - 86.67 percent, Vast Resources will contribute up to US$1 million as initial funding and if any additional funds are required, this will be via an equity raise.
Additionally, Botswana Diamonds and Vast Resources 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.
“I am delighted that we have concluded terms with Vast Resources on developing their concessions within the prolific Marange Diamond Fields.
"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," commented Teeling.
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