Paragon Diamonds has signed a memorandum of understanding (MoU) with a privately-owned Botswana company to secure several prospecting licences across diamond-prospective terrains in the southern African country.
The diamond junior said in a statement that the licences covered 1 686 km² over several known kimberlites, including one in the Orapa kimberlite field.
Issued in July 2011, the licences were valid until June 2014 and can be extended for a further four years subject to certain conditions.
The MoU, said Paragon, stipulated a six-month period during which it may review data on the licences, undertake appropriate due diligence and negotiate earning an equity interest in the licences in return for funding exploration costs, on terms still to be finalised.
“The agreement allows the company to quickly accelerate its exploration presence in Botswana, by participating in some prime exploration opportunities,” said Paragon managing director Stephen Grimmer.
“Notwithstanding, the company is also seeking to increase its presence in Botswana, through direct applications for PL's."
Paragon was currently operating the Lemphane diamond project and the Motete Dyke exploration project, in Lesotho, as well as the Kaplamp diamond licence, in Zambia, the Kopje exploration project, in Botswana, and the Mabuki diamond operation, in Tanzania.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished