Botswana Diamonds (BOD) has agreed to acquire the KX36 Diamond discovery in Botswana, along with two adjacent Prospecting Licences and a diamond processing plant.
According to the AIM and BSE listed diamond explorer, these interests are part of a package held by Sekaka Diamonds. BOD is acquiring 100% of the shares of Sekaka. The vendor is Petra Diamonds. The consideration comprises a cash payment of US$300,000 and a 5% royalty on future revenues. The cash consideration is payable on a deferred basis with US$150,000 payable on 31 August 2021 and the balance on or before 31 August 2022. The acquisition is subject to customary regulatory approvals.
BOD managing director, James Campbell said KX36 is 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,” Campbell said in statement.
BOD chairman, John Teeling on the other hand said the move is an important step forward for BOD. Teeling added KX36 is a very significant diamond discovery and potentially offers upside potential – as do the two contiguous prospecting licences.
“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.”