Botswana Diamonds eyes production at Thorny River asset

AIM-listed producer Botswana Diamonds hopes its Thorny River site in South Africa will become the first of its mines to move into operation after inking a mining contract with Palaeo Minerals.

As part of the deal, Botswana Diamonds – through its partner Vutomi – will net 12% of royalty revenues from the project, as well as a further 8% to cover state mineral royalties, sales and security expenses.

The remaining 80% of the estimated $2m to $7m per annum will go to Palaeo.

Botswana anticipates as much as 30,000 tons of kimberlite to be processed per month, with diamonds to be recovered using a processing facility at a nearby mine. Drilling has been slated to begin in 2019.

Chairman John Teeling, said: "We are confident that Thorny River could be the first diamond producing project for Botswana Diamonds."

"We anticipate the award of the necessary regulatory approvals in anticipation of revenue being generated during the course of 2019."

As of 0915 GMT, Botswana shares had taken of 16.47% to 0.99.