Botswana Exploration Alliance
(all images courtesy of Diamond Exploration Strategies Ltd)
On 9 June 2020, EHR entered into an Exploration Alliance Agreement (“Alliance”) with Diamond Exploration Strategies Ltd (“DES”), a privately owned company focused on diamond exploration in Botswana. Under the terms of the Alliance, EHR will provide funding of US$1.5 million over three years to finance exploration activities, earning 50% ownership of any discoveries made.
The Alliance is initially over five areas that have existing prospecting licenses, but extends to cover other prospective areas of Botswana that may be identified.
The Alliance Agreement
Using the well-proven project generator model, DES will perform all exploration activities using Alliance funding. If a promising discovery is made as a result of these activities and accepted by the joint technical committee as a designated project, the project will be initially owned 50% by EHR and 50% by DES, otherwise the project will remain owned by DES. EHR then has the option to sole fund a Scoping Study on a designated project to earn-in to a 70% ownership interest, with a further option to reach a 90% ownership interest by sole funding a Feasibility Study.
Alliance funding will be US$0.3 million in the first twelve months of the agreement, with subsequent annual funding of US$0.6 million for the succeeding two years. EHR will fund the first year from current cash resources and will fund subsequent years from future financing activities.
Diamond Exploration Strategies Ltd (DES) is a privately-owned diamond exploration and resource development company with its primary focus in Botswana. The principals of DES, Mr Barry Bayly and Mr Mike Shaw, have extensive experience in Botswana after many years in senior roles with De Beers and have built a substantial knowledge base including intimate understanding of certain opportunities being assessed. They are backed by a board of directors with wide experience in the minerals industry.
Through its 100% owned Botswana subsidiary, DiamExStrat Botswana (Pty) Ltd., DES has 2,053km2 of highly prospective diamond licences in five project areas in Botswana and is continually assessing further opportunities.
More details about DES are available at www.diamondexplorationstrategies.com.