Pangolin Diamonds Corp has said that Umgeni Holdings International Limited has agreed to acquire a royalty interest in Pangolin’s Precious Stones Prospecting Licences located within the Central District of Botswana, as well as an area defined as the Adjacent Area of Interest for $600,000. 

This is the second such pact the two entities have inked. In May last year, Umgeni, a private company of which Dr Christopher Jennings is a beneficiary of the sole shareholder, initially purchased a 1.3% gross overriding royalty on diamonds (GOR) and a 1.3% net smelter returns royalty on base and precious metals (NSR) for $600,000.

Under the present agreement, Umgeni has agreed to pay Pangolin an additional $600,000 (for a total of $1,200,000 in funding to date) to acquire a 2.6% GOR and a 2.6% NSR over the Precious Stone Prospecting Licences issued to Pangolin Diamonds (Pty) Limited and Geocontracts Botswana (Pty) Limited on the Malatswae, Moenyenana and Motloutse diamond projects. These are all located within the Central District of the Republic of Botswana and valid as at 01 April 2017, as well as a defined Adjacent Area of Interest.

Pangolin Diamonds (Pty) Limited and Geocontracts Botswana (Pty) Limited are 100% owned subsidiaries of Pangolin Diamonds Corp.

Dr. Jennings stated, “the primary reasons for my additional royalty purchase is because I believe Dr. Daniels knows more about Botswana’s kimberlite geology than anyone else in the world, and I strongly believe Pangolin is on the right track to discover a new and significant kimberlite field southeast of the Orapa Kimberlite Field at their Malatswae Diamond Project in Botswana.”

Exploration activities in Botswana have continued with systematic soil sampling, groundmagnetic surveys conducted over selected aeromagnetic anomalies and percussion as well as core drilling. A total of thirty two +0.425 mm -4.0 mm diamonds have been recovered from soil samples to date and twenty seven (27) within the Malatswae Diamond Project, the largest being 0.19 carats.

Aeromagnetic anomaly soil sampling will continue followed by groundmagnetic surveys over targets where anomalous kimberlite indicator minerals are recovered. Drilling to date has discovered a kimberlite dyke where there is a 100 tonne bulk sample underway to determine its potential economics, and no kimberlite pipes have been discovered as yet.