Botswana Diamonds and Vutomi, in which it holds a 40 percent interest, has signed a contract mining and processing agreement with Eurafrican Diamond Corporation (EDC) to mine and process the diamond-bearing gravels and residual stockpiles on a portion of the Marsfontein farm.
"Partnering with Eurafrican Diamond Corporation paves the way for commercial production to restart on Marsfontein and Thorny River," said John Teeling, Botswana Diamonds chairman.
The contract mining and processing agreement allows for the continued contractual bulk sampling on the Thorny River project. The agreement gives EDC a contract for the mining and processing of the identified deposits on the Marsfontein Mining Permit, with 25 percent of the pre-tax revenue from larger or high value "Special Stones" (weighing 10.8+ carats or valued at over $8,000 per carat) and 15 percent from the standard "Run of Mine") stones accruing to Vutomi.
EDC is currently mining and processing the Schuller kimberlite pipe and diamond-bearing gravels around Petra's Cullinan Diamond Mine.