Botswana Diamonds plc yesterday announced that it has entered into an agreement with Vast Resources plc for the development of their concessions in the Marange Diamond Fields (MDF) of eastern Zimbabwe. 

“A separate agreement will cover the joint development of diamond properties outside of the MDF, which will be a straightforward 50/50 joint venture, though the initial focus of our joint work is on the MDF,” Botswana Diamonds clarified in its announcement statement.

As reported by Botswana Diamonds earlier, it will also be conducting due diligence with a view to entering a  joint venture agreement for diamond exploration, mining and marketing with Vast, for  the latter’s 'Heritage Concession' in the MDF of the Chiadzwa region of eastern Zimbabwe, to  which Vast holds exclusive access rights.

Botswana Diamonds reported that an  MoU signed in May 2018 between itself and Vast, has matured into an agreement on the MDF.

The agreement includes, Botswana Diamonds enumerated, the following:

• A Special Purpose Vehicle ('SPV') between BOD and Vast to develop diamond resources in the MDF.
• Initial shareholdings will be BOD - 13.33% and Vast - 86.67%.
• Vast will contribute up to US$1 million as initial funding.
• If any additional funds are required, this will be via an equity raise. 
• BOD and Vast may contribute to any future equity raise on a pro rata basis. If either party does not take up its allocation, the other may. Further announcements will be made as appropriate.

Botswana Diamonds Chairman John Teeling, Chairman, commented: "I am delighted that we have concluded terms with Vast 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 and we look forward to providing further updates to the market in due course."