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African Diamonds says progress being made over AK06 discovery

Monday, September 22, 2008

African Diamonds, the AIM and Botswana listed diamond explorer, looks to be back on track in its efforts to start mining at the AK06 discovery after problems between its partner on the project De Beers and the Botswana government were resolved.

African said an agreement had been reached between De Beers and the Botswana government over the terms of the AK06 licence and how any diamonds from it would be marketed.

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.

African holds a 28.38% interest in the AK06 project and said it was now confident that the parties could work together towards completing mining licence talks by September 30. The company has also shelved court action that it was taking against De Beers after the diamond giant stalled over negotiations.






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