Photo by: Reuters
PERTH (miningweekly.com) – ASX-listed Kimberley Diamonds has acquired the Argyle Smoke Creek alluvial diamond project from fellow-listed Venus Metals Corporation.
The project, in Western Australia, comprises 22 prospecting licences and one mining lease application covering 11 km of unmined diamondiferous gravels located within the downstream portion of Smoke Creek, a tributary leading from miner Rio Tinto’s Argyle mine.
The project has an inferred resource of 21.5-million tonnes, at an average grade of 28 carats per hundred tons for six-million carats.
“The completion of this acquisition provides a second potential source of rough fancy coloured diamonds for Kimberley, alongside our flagship Ellendale diamond mine, which supplies around half of the world’s fancy yellow diamonds,” said Kimberley executive chairperson Alex Alexander.
Venus was paid A$1-million consideration for the sale of the asset, which consisted of A$250 000 in cash and the issue of A$750 000 worth of Kimberley shares, at an issue price of A$1.20 each.
The shares were subject to a voluntary escrow period of between 6 months and 12 months.
Alexander noted on Tuesday that apart from the acquisition, Kimberley was also making progress to complete the acquisition of Mantle Diamonds and the Lerala diamond mine, in Botswana.
Under the terms of that agreement, Kimberley would issue some 13.5-million new shares to Mantle shareholders in exchange for full ownership of the company.
The Lerala mine, which is currently on care and maintenance, comprises five diamondiferous kimberlite pipes totalling some 6.66 ha in size, along with a 230 t/h processing and recovery facility.