Diamond exploration and production company Kopand Diamonds (AIM: KDD) confirmed that it had converted a heads of agreement with Mantle Diamonds to a definitive joint venture agreement. The agreement will see Kopane vend its 28 mineral claims and reservations in Finland into the joint venture in and retain at least a 30% interest. Mantle Diamonds will be able to earn up to 70% by spending US$5 million which will include a bank feasibility study onthe Lahtojoki property. Mantle will also issue 20 million shares to Kopane as certain milestones are met.
Meanwhile in Lesotho, where Kopane produces diamonds from its Liqhobong operations, the company confirmed that despite heavy rainfall, it had continued to make progress at its satellite mine. In the second half of 2007, the company sold 77,575 carats of diamonds at an average sale price of US$49/carat generating total revenues of US$3.81 million. Tim Read, Chairman of Kopane Diamonds added that the overall value of the stones produced had risen due to some material being sourced from a second, larger pipe named the 'Main Pipe'. Previously all material was source solely from the smaller 'Satellite Pipe'.
Kopane is keen to turn the Main Pipe into a producing mine, and announced that it would drill 20 wide diameter drill holes into the main pipe to collect at least 1,300 tonnes of material for analysis. At the moment Kopane is removing the softer near surface material in preparation for drilling the harder unweathered kimberlite.