Botswana Diamonds and Vast Resources have signed a new agreement in respect of their proposed joint venture (JV) in Marange area, in Zimbabwe.
The two companies had previously concluded an agreement for the development of Heritage concessions in the Marange diamond fields and that a separate agreement would cover the joint development of diamond properties outside of the Marange diamond fields.
Vast then recently entered into a joint venture agreement with Chiadzwa Mineral Resources to establish Katanga Mining.
Katanga intends to conclude a joint venture agreement with the Zimbabwe Consolidated Diamond Company (ZCDC) for the purpose of exploring and mining at the Chiadzwa community diamond concession as well as marketing diamonds mined from the operation.
Botswana Diamonds said it will be issued with new shares representing 2.5% of Katanga when the detailed agreement between Katanga and ZCDC becomes effective.
“Zimbabwe is opening up to investment. The country is rich in resources and has significant diamond potential,” said Botswana chairperson John Teeling.
“…this a revised package from that on which Botswana Diamonds and Vast Resources had previously agreed to cooperate.”
Vast will provide all capital requirements for the project start on a loan account to Katanga, up to a maximum of $10-million.
Image credit: Botswana Diamonds