Serengeti, Anglo form joint venture

Anglo American of South Africa and Serengeti Diamonds (SCG-V) have reached an agreement-in-principle to explore for gold and base metals in Tanzania.

The agreement calls for Anglo American to process and interpret an airborne geophysical survey that covers substantially all of Tanzania. The survey was acquired by Serengeti, which holds diamond exploration properties in the country. The junior will use the survey results to aid in future diamond exploration.

During the second phase, the companies will select a minimum of six gold or base metal targets identified by the study for further work.

Anglo American will hold a 75% interest and Serengeti Diamonds the remaining 25%. Excluded from the agreement are areas where Anglo American has prior commitments.

To retains its interest, Anglo American must advance the projects to the feasibility stage.