Kopane Diamonds (AIM: KDD), the exploration and production mining company with projects in Lesotho and Finland, announced that it has signed a heads of agreement with Mantle Diamonds.
If the heads of agreement is converted into a joint venture, Mantle Diamonds will earn up to 70% in Kopane's Finnish properties by spending US$5 million, including the completion of a bankable feasibility study on the Lahtojoke property. Mantle will also issue £2 million in shares to Kopane in three tranches triggered by the completion of certain milestones.
Tim Read, Executive Chairman of the Company said:
"This Proposal is a very important step forward in the restructuring of Kopane. It allows us to concentrate Kopane's management, technical and financial resources on our Liqhobong assets in Lesotho, whilst continuing to participate in the development of the Finnish assets. Mantle has a strong diamond exploration team with a good understanding of Finland's potential. We are confident that they will be able to add considerable value to the joint venture."