Business
JV acquisition of Ghaghoo diamond mine in Botswana
JV acquisition of Ghaghoo diamond mine in Botswana.
About this update from Botswana Minerals Plc
[{"type":"text","content":"\n \n \n \n RNS Number : 3900J\n Botswana Diamonds PLC\n 23 August 2021\n \n \n \n \n 23rd August 2021\n \n \n \n \n \n \n \n \n \n Botswana Diamonds PLC\n \n \n (\"Botswana Diamonds\" or the \"Company\")\n \n \n Joint venture acquisition of Ghaghoo diamond mine in Botswana\n \n \n \n \n \n Botswana Diamonds plc (\"BOD\") is pleased to announce that Okwa Diamonds Pty Ltd, a joint venture with Vast Resources plc (\"VAST\") in which Botswana Diamonds has an initial 10% carried interest, has today conditionally agreed to acquire Gem Diamonds Botswana Pty Ltd (\"GDB\"), a wholly owned subsidiary of Gem Diamonds Ltd (\"Gem Diamonds\"), for a cash consideration of US$4 million. GDB's primary asset is the fully permitted Ghaghoo diamond mine in central Botswana which is currently under care and maintenance. \n \n \n \n \n \n BOD has an initial free carried interest of 10% in Okwa Diamonds Pty Ltd (\"Okwa\") for the first US$15 million of expenditure by Okwa, which is being funded by VAST (including the acquisition cash consideration). Thereafter, BOD will not be diluted below 2.5% of Okwa. BOD can also earn up to a further 20% interest in Okwa through funding 20% of expenditure. Under the terms of the joint venture with VAST, BOD will be the operator of the Ghaghoo mine until such time as an agreed management team is in place.\n \n \n \n \n \n The acquisition of GDB is conditional, inter alia, on relevant regulatory and competition authority approvals in Botswana and is expected to complete during the latter part of 2021.\n \n \n \n \n \n Highlights\n \n \n · \n \n Ghaghoo is a 10.8 Ha kimberlite pipe in central Botswana, 300km north-west of Gaborone which is currently on care and maintenance\n \n \n \n · \n \n The kimberlite pipe has a reported SAMREC compliant Indicated Resource of 79.3 million tonnes at an average grade of 19.5 cpht and diamond value of $242/ct (2014 data)\n \n \n \n · \n \n Diamond assortment includes high-value fancy-coloured diamonds, such as orange and blue stones\n \n \n \n · \n \n Conditional acquisition by joint venture, Okwa, of a fully permitted diamond mine including mine infrastructure, fit-for-purpose processing plant and camp, for US$4m to be funded by VAST\n \n \n \n · \n \n Ghaghoo is currently under care and maintenance the intention is to return the mine back into...