Pangolin Diamonds to acquire Amulet Diamond

Pangolin Diamonds has entered into a letter agreement to acquire all of the issued and outstanding shares of Amulet Diamond from Diamond Corporation.
Amulet Diamond, an arm's length party to Diamond Corporation, holds certain plant and equipment assets relating to the BK11 Mine, located in Letlhakane, Botswana.
The BK11 Assets were originally acquired by Amulet Bots from Firestone Diamonds in 2017.
Pangolin has agreed to use its best commercial efforts to liquidate the BK11 Assets following the completion of the transactions, subject to certain exceptions.
It will also remit to Diacor 90% of the proceeds from such dispositions for up to 18 months until the company has received $500,000 in satisfaction of the Amulet indebtedness.
Diacor, which is an arm's length party to each of Amulet Canada, Amulet Bots and Diamond Corporation, holds security over all of the assets and undertakings of Amulet Canada in connection with the extension of a $2 million loan.
Pangolin has also agreed to grant Diacor a general security interest in its assets and undertakings for the duration of the Disposition Period.
“Regardless of the value of the proceeds remitted to Diacor by Pangolin during the disposition period, Diacor has agreed to discharge the Pangolin Security upon the termination of the disposition period, at which point Diacor will no longer have any interest in and to the proceeds of any future sales of BK11 assets,” it said.
This means Pangolin will retain a 100% interest in all such sales and any remaining BK11 Assets.

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