| Tue 22 Dec 2009, 9:14 | | TAW - Tawana Resources NL - Botswana Joint Venture agreement signed with |
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TAW
TAW
TAW - Tawana Resources NL - Botswana Joint Venture agreement signed with
Firestone Diamonds PLC
Tawana Resources NL
(Incorporated in Australia)
(Registration number ACN 085 166 721)
Share code on the JSE Limited: TAW
ISIN: AU000000TAW7
Share code on the Australian Stock Exchange Limited: TAW
ISIN: AU000000TAW7
("Tawana" or "the Company")
21 December 2009
BOTSWANA JOINT VENTURE AGREEMENT SIGNED WITH FIRESTONE DIAMONDS PLC
Tawana Resources NL ("Tawana") is pleased to announce that it has entered into
a joint venture agreement with Firestone Diamonds plc ("Firestone") a diamond
mining and exploration company, over its kimberlite exploration and evaluation
projects in Botswana, which includes 8 kimberlites in the Orapa kimberlite
field. Under this agreement Firestone has the opportunity to earn initially
up to a 70% interest in any kimberlites in the prospecting licences controlled
by Tawana.
Firestone is an international diamond mining and exploration company with
operations in Botswana and South Africa. Firestone is the largest holder of
mineral rights in Botswana`s diamondiferous kimberlite fields, controlling
over 25,000 square kilometres around the major Orapa and Jwaneng mines and the
entire Tsabong kimberlite field.
Highlights
- Firestone to acquire an interest in Tawana`s kimberlite projects in
Botswana:
- Firestone can earn 70% by carrying out costs for the first stage
bulk sampling;
- Tawana has the option to fund its remaining 30% interest from that
point and in the event it does not its interests shall reduce to
15%.
- Orapa prospecting licence:
- contains 8 kimberlites and covers 57 square kilometers;
- located close to Debswana`s Damtshaa Mine;
- 26 kilometers from Firestone`s BK11 mine development project;
review of historical data due to be completed in January 2010.
- Francistown prospecting licences
- cover an area of 1,500 square kilometers;
- located in the right geological setting for discovery of
diamondiferous kimberlites;
- Firestone`s review of historical data due to be completed in Q1
2010.
Euan Luff, chairman of Tawana commented "with Firestone`s major project close
to Tawana`s project, Tawana now has the ability to access the infrastructure
of Firestone to develop and exploit the economic potential of its kimberlites
in the Orapa area quickly and at relatively low cost. We are excited about
the potential of our kimberlites in the Opara area, and look forward to
updating our shareholders about the results of Firestone`s initial review of
the project in early 2010."
Orapa prospecting licence
The Orapa prospecting licence covers an area of 57 square kilometres in the
Orapa kimberlite field and contains a cluster of 8 kimberlites, BK19-26. The
largest of these kimberlites, BK24, is located 2.5 kilometres from Debswana`s
Damtshaa Mine and 26 kilometres from Firestone`s BK11 kimberlite, which is due
to commence commercial production in Q2 2010. Firestone has commenced a review
of the historical data available from work carried out by Tawana and other
operators on BK19-26. This review is expected to be completed in January
2010.
Francistown prospecting licences
The Francistown prospecting licences cover an area of 1,500 square kilometres
close to the town of Francistown in eastern Botswana. Although no kimberlites
have been discovered in this area before now, the prospecting licences are
located in the right geological setting for the discovery of diamondiferous
kimberlites. Firestone also commenced a review of the historical data
available from work carried out by Tawana and other operators in this area.
This review is expected to be completed in Q1 2010
Firestone can earn a 70% interest in any kimberlite by financing all
evaluation work on that kimberlite up to the completion of a bulk sample of a
minimum of 150 tonnes from kimberlites less than 1 hectare in size, and of a
minimum of 250 tonnes from kimberlites greater than 1 hectare in size. Tawana
will then have an option to fund its pro-rata share of all further work on
that kimberlite. If Tawana is unwilling or unable to exercise this option,
Firestone will be entitled to earn an additional 15% by financing all further
evaluation work up to and including the making of a mine development decision
on that kimberlite. The agreement is subject to the approval of the Minister
of Minerals, Energy & Water Resources.
Yours faithfully
Mr Euan Luff
Chairman
Tel: +61 3 9224 1000
Email: eluff@wfw.com.au
South African Sponsor
PricewaterhouseCoopers Corporate Finance (Pty) Ltd
Date: 22/12/2009 09:14:13 Produced by the JSE SENS Department.
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