An agreement between an national firm and Botswana Diamondfields (BWD-V) sets the stage for that company to secure rights to a large diamond concession in the Lunda Norte region of Angola.
The concessions cover 13,230 sq. km in the northernmost portion of the province, within a major diamond producing area. The gems produced from the region are noted for their quality and larger-than-average size.
Although the agreement is still subject to certain approvals, plans call for Botswana Diamondfields to act as the foreign mining partner of the Angolan company, which, in turn, has a partnership with the state-owned diamond company. The junior will act as operator and fund exploration and development of the concession.
Funding provided by Botswana Diamondfields will be repaid at a rate of 85% of net profits earned in any year. Once exploration and development costs have been repaid, net profits will be split between the junior and its Angolan partner. The company is seeking to acquire a second concession in the Lunda Norte region.
Ongoing exploration programs will re-evaluate existing alluvial diamond occurrences and attempt to identify new kimberlite or alluvial targets.
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