Botswana Diamonds PLC Zimbabwe Update (9131U)
November 28 2019 - 1:00AM
UK Regulatory
TIDMBOD
RNS Number : 9131U
Botswana Diamonds PLC
28 November 2019
28(th) November 2019
Botswana Diamonds PLC
("Botswana Diamonds" or the "Company")
Zimbabwe Update
Botswana Diamonds ("BOD"), the AIM and BSE listed diamond
explorer, is pleased to provide an update on its proposed diamond
exploration and development activities in Zimbabwe. BOD and VAST
Resources plc ("Vast") have today agreed the terms of a new
agreement in respect of their proposed joint venture in the
Chiadzwa / Marange area of Zimbabwe ("New Agreement").
Background
As previously announced in October 2018, Botswana Diamonds
concluded an agreement with Vast for the development of Vast's
Heritage concessions in the Marange Diamond Fields (the "Heritage
Concession Agreement"), and that a separate agreement would cover
the joint development of diamond properties outside of the Marange
Diamond Fields.
Vast subsequently entered into a joint venture agreement with
Chiadzwa Mineral Resources (pvt) Ltd, a Zimbabwe company owned by
the Chiadzwa Community Development Trust, (the "Chiadzwa Community
JV"), in relation to an area of diamond prospectivity known as the
Chiadzwa Community Diamond Concession within the Marange Diamond
Fields, and established a new company, Katanga Mining (pvt) Ltd
("Katanga"), for the purpose of the operating the Chiadzwa
Community JV. Katanga intends to conclude a joint venture agreement
with Zimbabwe Consolidated Diamond Company ("ZCDC") for the
purposes of exploring and mining at the Chiadzwa Community Diamond
Concession and marketing the diamonds derived from the
operation.
Due to these changes in the area likely to be licenced by Vast
Resources, BOD and Vast have today entered into the New Agreement
which replaces the Heritage Concession Agreement.
New Agreement
The principal terms of the new agreement are as follows:
-- A new company ("Newco") has been formed to hold the interests
of Vast in the Chiadzwa Community JV and Katanga.
-- When the detailed agreement between Katanga and ZCDC becomes
effective, Botswana Diamonds will be issued with new shares
representing 2.5% of Newco.
-- In consideration for the issue of the Newco shares, BOD has
agreed to provide for 5 years its management know-how at no charge
(with a minimum of 40 hours per month) to Vast and Newco for
exploration, mining, processing and marketing in relation to the
Chiadzwa Community Diamond Concession.
-- Vast will provide all capital requirements for the project
commencement on a loan account to Newco, up to a maximum of
US$10m.
If BOD wishes to sell or dispose of its interest in Newco, the
New Agreement grants Vast the right (but not the obligation) to
acquire BOD's interest in Newco at fair value.
John Teeling, chairman, commented, "Zimbabwe is opening up to
investment. The country is rich in resources and has significant
diamond potential. Vast Resources is at an advanced stage in
finalising an agreement with the Central Authorities on a package
of ground in the Chiadzwa / Marange area. This is a revised package
from that on which Botswana Diamonds and Vast Resources had
previously agreed to cooperate. In the light of this development,
our previous agreement with Vast has been revised on new terms
acceptable to the board. We look forward to the diamond agreement
being concluded and to work starting on what is highly prospective
ground. Botswana Diamonds is also studying additional opportunities
in Zimbabwe."
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
Megan Ray +44 (0) 207 138 3222
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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