Botswana Diamonds (BOD), together with its associate Vutomi (BOD interest 40%), 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. It also allows for the continued contractual bulk sampling on the Thorny River project, according to a press release.
The agreement gives EDC a contract for the mining and processing of the identified deposits on the Marsfontein Mining Permit, with 25% of the pre-tax revenue from larger or high value "Special Stones" (any stones weighing 10.8 carats or more or valued at more than $8,000 per carat) and 15% from the standard "Run of Mine") stones accruing to Vutomi. John Teeling, Chairman, said that "partnering with Eurafrican Diamond Corporation paves the way for commercial production to re-start on Marsfontein and Thorny River. EDC has a rich history of successful diamond mining and processing and has excellent technical and financial support. Furthermore, the EDC and Vutomi projects complement one another, providing a strong project pipeline."
EDC has long been a premier diamond miner and processer, and is currently mining and processing the Schuller kimberlite pipe and diamond-bearing gravels around Petra's Cullinan Diamond Mine. BOD notes that the contract mining and processing agreement also grants as first refusal rights, between EDC and Vutomi, on all their South African diamond exploration and development projects. The Environmental Authorisation has already been granted for the Marsfontein project and the junior miner expects to receive the remaining regulatory grants shortly.
Photo of contract signing courtesy of Jamas AH Campbell, Managing Director of Botswana Diamonds, via LinkedIn