Pangolin Diamonds to buy Amulet’s assets in Botswana

Canada’s Pangolin Diamonds (TSX-V: PAN) has unveiled an agreement with Amulet Diamond Corp to buy all issued and outstanding shares of the company’s subsidiary in Botswana for a nominal figure.

Amulet Botswana holds certain plant and equipment assets relating to the BK11 mine, in the country’s village of Letlhakane, Pangolin said.

These assets were originally acquired pursuant to the terms of a contractor and sampling services agreement, which was signed with Firestone Diamonds in 2017.

Pangolin has agreed to use its “best commercial efforts” to liquidate the BK11 assets following completion of the transaction. It will also remit to Diacor International, which holds securities over Amulet’s assets, 90% of the proceeds over a period of up to 18 months until Diacor has received $500 000 in repayment of the loan.

Led by Leon Daniels, the same geologist who discovered the kimberlite pipe that produced the giant Lesedi La Rona diamond, Pangolin has grown its portfolio in the past four years.

In 2018, it bought a 51% stake in a former De Beers mine, the so called AK10 diamond asset, located in the Orapa kimberlite field, the same area where Canada’s Lucara Diamond (TSX:LUC) has its Karowe mine. Currently, the company has seven 100%-owned projects, all in Botswana.