(IDEX Online) - Diamond explorer Botswana Diamonds (BOD) and VAST Resources plc (Vast) have agreed the terms of a new agreement for their proposed joint venture in the Chiadzwa / Marange area of Zimbabwe.
In October 2018, BOD and Vast concluded an agreement to development Vast's Heritage concessions in the Marange Diamond Fields (the Heritage Concession Agreement). They also agreed a separate agreement would cover the joint development of diamond properties outside of the Marange Diamond Fields.
Vast then entered a JV agreement with Chiadzwa Mineral Resources (pvt) Ltd, a Zimbabwe company owned by the Chiadzwa Community Development Trust, (the Chiadzwa Community JV) for an area of diamond prospectivity known as the Chiadzwa Community Diamond Concession within the Marange Diamond Fields.
It also established a new company, Katanga Mining (pvt) Ltd (Katanga), to operate the Chiadzwa Community JV.
Katanga intends to conclude a joint venture agreement with Zimbabwe Consolidated Diamond Company (ZCDC) to explore and mine at the Chiadzwa Community Diamond Concession and market the diamonds derived from the operation.
Due to changes in the area likely to be licenced by Vast Resources, BOD and Vast have entered into a new agreement that replaces the Heritage Concession Agreement.
As part of this new agreement, a new company (Newco) has been formed to hold the interests of Vast in the Chiadzwa Community JV and Katanga.
When the agreement between Katanga and ZCDC becomes effective, BOD will be issued with new shares representing 2.5 percent of Newco.
In return, BOD has agreed to provide free management advice for five years to Vast and Newco for exploration, mining, processing and marketing in relation to the Chiadzwa Community Diamond Concession.
"Zimbabwe is opening up to investment. The country is rich in resources and has significant diamond potential," said BOD chairman John Teeling who said the company is also studying additional opportunities in the country.