Pangolin Diamonds has announced that it has finalised commercial terms of a Joint Venture Agreement with Makanwu Civil Blasting (MCB), giving it the sole and exclusive option to earn up to a 75% interest in respect of MCB’s precious stone AK10 Diamond Project (a 6 Hectare Diamondiferous Kimberlite Pipe) located in the Central District of Botswana.

Simultaneously, Pangolin also signed an MoU with Amulet Diamonds Corporation (AMU), under which the latter will offer consider making available its small bulk sampling processing plant located nearby at the BK 11 kimberlite for the processing of bulk sampling material from AK10. The two companies further agreed that AMU will be offered the opportunity to participate with Pangolin in its share of AK10 the JV with MCB is finalised. 

Pangolin said that 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 use of AMU’s small bulk sampling plant and terms of possible participation in the AK-10 JV will both be subject to a separate and specific commercial agreements to be negotiated, Pangolin said.

In addition, the two companies also agreed that AMU will have a First Right of Refusal in the event that Pangolin decides to divest in its interest in the AK10 Diamond Project, subject to the provisions of the JV Agreement it has with MCB.

In the same statement, Pangolin also announced that drilling on its other projects in Botswana has continued during the second quarter. However, due to large sample backlogs at laboratories, with analytical results from the drilling conducted in the first quarter not yet received, these will be sent subsequently for analysis.