Irish diamond exploration company African Diamonds says it has brokered a deal to buy out De Beers' 71% stake in the Botswana AK6 diamond project.
De Beers' stake in the diamond discovery will be transferred to Lucara, a Toronto-listed company controlled by the Lundin group.
Under the deal, African Diamonds has a 120-day option to increase its stake in AK6 from 29% to 40% for £4.8m sterling. The company says it intends to take up this option. The agreement with De Beers is subject to Botswana government approval.
Studies commissioned by African Diamonds show that it will cost $63m to establish the mine at two million tonnes a year of output.
The company says construction on the site is expected to start in mid-2010 and it will take 14 months for the mine to start work.
