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Botswana Diamonds signs mining and processing deal over Marsfontein
24th Sep 2019 09:27
(Sharecast News) - Botswana Diamonds announced on Tuesday that, together with its associate Vutomi, in which it has a 40% interest, it has signed a contract mining and processing agreement with Eurafrican Diamond Corporation (EDC) to mine and process the diamond-bearing gravels and residual stockpiles on a portion of the Marsfontein farm.
The AIM-traded firm explained that the agreement gave EDC a contract for the mining and processing of the identified deposits on the Marsfontein Mining Permit, with 25% of the pre-tax revenue from larger or high value 'special stone', meaning any stones weighing 10.8 carats or more or valued at more than $8,000 per carat, and 15% from the standard run-of-mine stones.
"Partnering with Eurafrican Diamond Corporation paves the way for commercial production to restart on Marsfontein and Thorny River," said Botswana Diamonds chairman John Teeling.
"EDC has a rich history of successful diamond mining and processing and has excellent technical and financial support.
"Furthermore, EDC and Vutomi projects complement one another, providing a strong project pipeline."
The company said the contract mining and processing agreement allowed for the continued contractual bulk sampling on the Thorny River project, as well as first refusal rights, between EDC and Vutomi on all their South African diamond exploration and development projects.
It added that the environmental authorisation had already been granted for the Marsfontein project, it announced on 12 September.
Botswana Diamonds said it was expecting to receive the remaining regulatory grants shortly.
The AIM-traded firm explained that the agreement gave EDC a contract for the mining and processing of the identified deposits on the Marsfontein Mining Permit, with 25% of the pre-tax revenue from larger or high value 'special stone', meaning any stones weighing 10.8 carats or more or valued at more than $8,000 per carat, and 15% from the standard run-of-mine stones.
"Partnering with Eurafrican Diamond Corporation paves the way for commercial production to restart on Marsfontein and Thorny River," said Botswana Diamonds chairman John Teeling.
"EDC has a rich history of successful diamond mining and processing and has excellent technical and financial support.
"Furthermore, EDC and Vutomi projects complement one another, providing a strong project pipeline."
The company said the contract mining and processing agreement allowed for the continued contractual bulk sampling on the Thorny River project, as well as first refusal rights, between EDC and Vutomi on all their South African diamond exploration and development projects.
It added that the environmental authorisation had already been granted for the Marsfontein project, it announced on 12 September.
Botswana Diamonds said it was expecting to receive the remaining regulatory grants shortly.