(Alliance News) - Botswana Diamonds PLC and associate Vutomi Mining Pty Ltd has signed a mining and processing agreement with Eurafrican Diamond Corp, Botswana Diamond said Tuesday.
Under the agreement, Eurafrican will mine and process identified deposits on the Marsfontein mining permit in South Africa, with 25% of revenue from larger or high value "special stones" and 15% from standard "run of mine" stones accruing to Vutomi.
Special stones refers to any stones weighing 10.8 carats or more, or valued at more than USD8,000 per carat.
The contract agreement also allows for the continued contractual bulk sampling on the Thorny River project, as well as first refusal rights between Eurafrican and Vutomi on all their South African diamond projects.
"Partnering with Eurafrican Diamond Corp 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," said Chair John Teeling.
Shares in Botswana Diamonds were up 8.8% at 0.79 pence on Tuesday in London.
By Dayo Laniyan; dayolaniyan@alliancenews.com
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Botswana Diam (BOD)