Deal will allow the company to self-fund the Thorny River project from bulk sampling through to mine development.
Botswana Diamonds Mining News
Decision comes after the companies received Wednesday a preliminary geological assessment of the property, which shows Heritage contains several targets for modern alluvial diamond placer deposits.
Vast Resource is expected to carry out an initial assessment of the Heritage Concession, in the Marange Diamond Fields area.
BCL mine group, which has been under liquidation since 2016, is selling its 51 percent stake in Maibwe Diamonds for an undisclosed amount.
Area is close to the Venetia mine, operated by De Beers, which delivers around 40% of South Africa’s annual diamond production.
The two companies will exchange past exploration information on areas prospective for diamonds in Zimbabwe and form a jointly-owned special purpose vehicle to develop and exploit diamond resources.
Proceeds from the placing will fund ongoing diamond exploration in South Africa and Botswana, and will also provide the company with additional working capital, the company said.
Diamonds recovered during sampling at the project were not sufficient to produce a modelled diamond valuation, said the company.
Sampling work at Ontevreden, part of the Vutomi joint venture, seems to prove the presence of high-grade kimberlite pipes.
Vutomi licences were extended into additional area of mineralization adjacent to the firm’s Frischgewaagt project in South Africa.
The company identified a group 2 kimberlite pipe in an area known by its high-grade diamonds.