BSE-listed diamond explorer, Botswana Diamonds (BOD), has entered into a cooperation agreement to fund exploration of its prospecting licence assets in Botswana with Diamexstrat Botswana Pty Ltd (DESB)which in turn has an alliance agreement with Burgundy Diamond Mines Limited, this publication has established.
The cooperation agreement between the companies has four sections, each with different conditions, relating to discoveries on prospecting licences held by BOD or any subsidiary of BOD, prospecting licences held by DESB or any subsidiary of DESB, areas where prospecting licences for diamonds are held by third parties, as well areas where new prospecting licenses are applied for.
BOD Chairman John Teeling has noted that their partnership with Diamexstrat and its ASX listed-partner presents them with a huge opportunity to expand and deepen their exploration work in the country. “Botswana is one of the world’s best addresses for diamond exploration,” Teeling said in a BOD statement published on BSE recently. “The combination of a fresh approach and advanced technology, supported by a recovering diamond market, presents us with significant opportunities.”
DESB (and partners) will get 51 percent of each licence by discovering a diamondiferous kimberlite rising and to 70 percent by completing a bankable feasibility study. ‘Where our database is used to find targets on ground held by the partners, there is a free carry for BOD of 15 percent on the first US$1.5m spent on exploration,” Teeling said. “Where the data is used to identify targets on third party licences or on fresh ground, we will jointly negotiate earn in agreements. On new licences, BOD will hold 75 percent, falling to 30 percent on delivery of a bankable feasibility study by DESB.”
Meanwhile, BOD’s prospecting assets in Botswana comprise the recently acquired Sekaka Diamonds Exploration Pty Ltd (Sekaka) database and prospecting licenses, as well as the prospecting licences held by BOD’s subsidiary, Sunland Minerals Pty Ltd.
Botswana Diamonds completed acquisition of Sekaka in November last year. The acquisition holds three prospecting licences in the Central Kalahari Game Reserve in Botswana, PL169/2019, PL058/2007 and PL224/2007, which includes the KX36 kimberlite pipe. The acquisition also included an extensive database.
Another asset of BOD in Sunland Minerals holds 12 active prospecting licences in the Gope/CKGR (Kalahari) area. As at 30 June 2020, the audited carrying value of BOD’s Sunland Minerals assets amounted to £1.1 million and Sunland’s loss before tax amounted to £43,101. In the year ended 30 June 2020, Sunland’s exploration expenditure, mainly comprising licence fees and costs of maintaining the licence in good standing, together with agreed fixed costs and expenses, amounted to £65,760.