Botswana Diamonds to acquire kimberlite pipe in Kalahari
Dublin-based company describes pipe as a very significant diamond discovery in Africa
Botswana chairman John Teeling said the acquisition of the KX36 diamond discovery was “an important step forward”.
Dublin-based explorer Botswana Diamonds has agreed to acquire a kimberlite pipe in the Kalahari Desert along with two adjacent prospecting licences and a diamond processing plant for a cash payment of $300,000 (€261,772) and a 5 per cent royalty on future revenues.
Kimberlite is an igneous rock which sometimes contains diamonds. These interests are part of a package held by Sekaka Diamonds. Botswana Diamonds is acquiring 100 per cent of the shares of Sekaka. The vendor is Petra Diamonds.
The cash consideration is payable on a deferred basis with $150,000 payable on August 31st, while the balance is due on or before August 31st, 2022. The acquisition is subject to customary regulatory approvals.
Botswana chairman John Teeling said the acquisition of the KX36 diamond discovery in Botswana was “an important step forward” for the company.
“KX36 is a very significant diamond discovery and potentially offers upside potential – as do the two contiguous prospecting licences,” he said.
“You rarely, if ever, find a kimberlite pipe on its own and further exploration may find more kimberlite pipes.
“KX36, located deep in the Kalahari, presents challenges, but the greatest challenge of all is overcome – finding a significantly sized high-grade deposit. We have evaluated options on KX36 and believe we can add value to the discovery.”
Botswana managing director James Campbell said KX36 was “the most significant diamond discovery in Botswana since Orapa and Jwaneng”.
“KX36, together with its associated prospecting licenses, adds scale to the company’s Sunland and Maibwe JV properties in the Kalahari.
“Botswana Diamonds will refine resource estimates of KX36, and development options. The Sekaka exploration database adds to Botswana Diamonds’ extensive database, improving our diamond exploration programme, particularly in the Kalahari where we are currently focused.”