BOD enters into agreement to fast-track its exploration
Public listed diamond exploration company, Botswana Diamonds (BOD) has entered into a cooperation agreement to fund its exploration activities in Botswana.
BOD announced this week that it has agreed with Diamexstrat, which in turn has an alliance agreement with Australian-based Burgundy Diamond Mines Ltd, for the financing of its prospecting licences in Botswana.
The company’s prospecting assets include the recently acquired Sekaka Diamonds Exploration database as well as Prospecting Licences held by BOD’s subsidiary, Sunland Minerals.
Under the agreement, Diamexstrat can earn up to 70 percent interest in BOD’s Botswana’s Sunland Minerals and Sekaka’s Prospecting Licences.
BOD, on the other hand, can earn a 15 percent interest in Prospecting Licences held by Diamexstrat and partners of the first US$1.5 million spent on exploration by Diamexstrat should BOD’s database assist in the discovery of primary kimberlite.
BOD Chairperson, John Teeling described Botswana as one of the world’s addresses for diamond exploration.
“The combination of a fresh approach and advanced technology, supported by a recovering diamond market, presents us with significant opportunities,” said Teeling.
The parties have agreed to use BOD’s diamond exploration database, acquired in 2020 as part of the acquisition of Sekaka Diamonds Exploration. The database contains the results of work undertaken by Sekaka’s former owner, Petra Diamonds, since 2005.
According to information shared with stakeholders this week, Diamexstrat has six months to conduct an initial review of BOD’s database, to identify exploration targets within any of BOD’s existing Sunland and Sekaka Prospecting Licences.
Through the agreement, Diamexstrat will be entitled to earn a 50 percent interest in a Designated Prospecting Licence by meeting the annual minimum Exploration Expenditure commitment on the Designated Prospecting Licence.
Meanwhile, BOD’s Managing Director, James Campbell expressed delight at the new arrangement.
“I look forward to working with Diamexstrat and Burgundy teams made-up of complimentary highly experienced and leading experts in the field of diamond exploration and project development,” said Campbell.