Vast Resources PLC (LON:VAST) has signed a Memorandum of Understanding with Botswana Diamonds PLC (LON:BOD) to investigate diamond opportunities together in Zimbabwe.
Under the terms of the MoU, the two companies have agreed to exchange information derived from past exploration on areas prospective for diamonds in Zimbabwe and to form a special purpose jointly owned company to develop and exploit diamond resources in Zimbabwe.
WATCH: Vast Resources CEO on Botswana Diamonds MoU and wider company strategy
Vast acquired a database related to diamonds in Zimbabwe back in 2008. It has also, until 2010, carried out its own exploration in the field, using information from the database, the company said in a statement.
Botswana Diamonds has independently acquired a Zimbabwe diamond database and has expertise in diamond exploration, development and mining. In particular, it has access to technology relating to extracting diamonds from hard rock.
"As a result of the new government's desire to open up business in Zimbabwe we believe the time has now come for us to make use of our historic diamond knowledge with a view to bringing value for all stakeholders in developing Zimbabwe's diamond resources, said chief executive Andrew Prelea.
“We are delighted to be working with Botswana Diamonds in order to achieve this."