Vast Resources exits Okwa Diamonds JV with Botswana Diamonds, new partner identified

Vast Resources has informed Botswana Diamonds and Gem Diamonds that it does not intend to proceed with the Okwa Diamonds joint venture agreement.
Botswana Diamonds said it has identified alternative potential partners to replace VAST as its joint venture partner in Okwa and has confirmed to Gem Diamonds its commitment to conclude the transaction as initially envisaged.  
“Botswana Diamonds, VAST and Gem Diamonds are working together towards a mutually beneficial outcome and have agreed to extend the long-stop date under the sale agreement from 31 January 2022 to 31 March 2022 to allow BOD to secure an alternative joint venture partner,” it said.
“The new partner replacing VAST in the Okwa joint venture may require further approval from the relevant Government of Botswana authorities.”
Botswana Diamonds announced in August 2021 that Okwa Diamonds, a joint venture with Vast in which it has an initial 10% carried interest, had conditionally agreed to acquire Gem Diamonds Botswana, a wholly-owned subsidiary of Gem Diamonds for a cash consideration of $4 million.
Gem Diamonds Botswana’s primary asset is the fully permitted Ghaghoo diamond mine in central Botswana, which is currently under care and maintenance.
Under the terms of the joint venture agreement, VAST was responsible for funding Okwa with the first $15 million of funding required for carrying out due diligence, acquiring Gem Diamonds Botswana and placing the mine back into production.
Completion was subject to several conditions (with a long stop date of 31 January 2022) including relevant regulatory and competition authority approvals within Botswana which have now been fulfilled and written approvals have been obtained from the Competition Authority and the Ministry of Mineral Resources.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished