Botswana Diamonds PLC Marsfontein Mining Contract Signed (3382N)
24 September 2019 - 4:00PM
UK Regulatory
TIDMBOD
RNS Number : 3382N
Botswana Diamonds PLC
24 September 2019
24 September 2019
Botswana Diamonds PLC
("Botswana Diamonds" or the "Company")
Marsfontein Mining Contract Signed
Botswana Diamonds ("BOD") is pleased to announce that, together
with its associate Vutomi (BOD interest 40%), 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 agreement gives 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
Stones" (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 accruing to Vutomi.
John Teeling, Chairman, said that "partnering with Eurafrican
Diamond Corporation paves the way for commercial production to
re-start on Marsfontein and Thorny River. 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".
EDC, established in 1964, has long been a premier diamond miner
and processer, and is currently mining and processing the Schuller
kimberlite pipe and diamond-bearing gravels around Petra's Cullinan
Diamond Mine, approximately 20km North West of Pretoria. EDC
receives technical support from the legendary Baxter Brown, who
discovered the Baken and Oena Diamond Mines in South Africa and
helped discover the Argyle Diamond Mine in Australia. His academic
papers helped transform diamond geology, contributing to
discoveries and improved development. The financial consultant to
EDC is Dr Mike Seeger is a respected mining financier and author of
many publications.
The contract mining and processing agreement allows 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.
The Environmental Authorisation has already been granted for the
Marsfontein project, as announced on 12(th) September 2019. We
expect to receive the remaining regulatory grants shortly.
This release has been approved by James Campbell, Managing
Director of Botswana Diamonds plc, a qualified geologist
(Pr.Sci.Nat), a Fellow of the Southern African Institute of Mining
and Metallurgy, a Fellow of the Institute of Materials, Metals and
Mining (UK) and with over 33-years' experience in the diamond
sector.
This announcement contains inside information for the purposes
of Article 7 of Regulation (EU) 596/2014. The person who arranged
for the release of this announcement on behalf of the Company was
James Campbell, Director
A copy of this announcement is available on the Company's
website, at www.botswanadiamonds.co.uk
ENDS
Enquiries:
Botswana Diamonds PLC
John Teeling, Chairman +353 1 833 2833
James Campbell, Managing Director +27 83 457 3724
Jim Finn, Director +353 1 833 2833
Beaumont Cornish - Nominated Adviser & Broker
Michael Cornish
Roland Cornish +44 (0) 020 7628 3396
Blytheweigh - PR +44 (0) 20 7138 3206
Julia Tilley +44 (0) 207 138 3553
Fergus Cowan +44 (0) 207 138 3208
Teneo
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
www.botswanadiamonds.co.uk
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END
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