RNS Number : 9159D
African Diamonds PLC
22 September 2008
22 September 2008
AK06 Diamond Discovery, Orapa, Botswana
* Mining Licence negotiations at an advanced stage - 30 September completion
targeted
* Retention Licence application not considered by Botswana Government
* Diamond marketing terms agreed between De Beers and the Botswana Government
African Diamonds plc, ("African Diamonds") the AIM and Botswana listed diamond explorer
(AIM: AFD), is pleased to announce progress
towards the development of the AK06 discovery in Botswana. African Diamonds holds a 28.38%
interest in the project.
The Director of Mines of Botswana has informed the parties that the Retention Licence
applied for by De Beers was not considered and in
his view was not formally lodged, as a Mining Licence application was still pending. This was
the advice given by African Diamonds to De
Beers prior to the submission of the Retention Licence. The rejection of this advice, amongst
other matters, started the court and
arbitration proceedings against De Beers and Boteti.
African Diamonds has been notified by De Beers that agreement has been reached between De
Beers and the Botswana Government on the
marketing of AK06 diamonds. The diamonds will be marketed through the Diamond Trading Company
Botswana in a similar fashion to current
Debswana production. Debswana is an equal joint venture between De Beers and the Botswana
government.
Of greater significance is the strong encouragement given by the Botswana government to
the three parties involved in the AK06
discovery to complete Mining Licence negotiations by 30 September 2008, so that a Mining
Licence can be awarded. Detailed discussions
between the parties and the State officials make African Diamonds' directors optimistic that
this deadline can be reached.
In the light of the progress being made toward a Mining Licence, the directors of African
Diamonds have agreed to seek deferment of a
court case scheduled for the Botswana High Court on 22 September 2008.
John Teeling, Chairman of African Diamonds commented:
"Significant progress has been made toward agreement on the terms of a Mining Licence for
the AK06 diamond discovery in Orapa. Earlier
attempts by De Beers to defer the project were rejected by the Botswana government.Difficulties with the marketing of the diamonds have
been ironed out. African Diamonds is satisfied with the new agreement. Final details are now
being worked out to enable agreement on the
terms of a Mining Licence to be completed by 30 September. Our court case is on hold."
This release has been approved by Alex van Zyl, Technical Director, African Diamonds. Alex
van Zyl (B.Sc. Stellenbosch, B.Sc. Hons.Pretoria) spent a long career in Anglo American in the diamond division, ending up 1990 to
1997 with worldwide responsibility for diamond
exploration and evaluation. He was a consultant to De Beers from 1997 to 2002.
Further information:
African Diamonds Plc
John Teeling Tel: +353 1 8332833
Alex van Zyl Tel: +27 83 261 2956
James AH Campbell Tel: +27 83 457 3724
RBC Capital Markets
Andrew Smith Tel: +44 20 7029 7882
Martin Eales Tel: +44 20 7029 7881
College Hill
Paddy Blewer Tel: +44 (0) 20 7457 2020
Nick Elwes Tel: +44 (0) 20 7457 2020
www.afdiamonds.com
This information is provided by RNS
The company news service from the London Stock Exchange
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