UK-based Americas Diamond has concluded the acquisition of SUDAM Diamonds, which has an option to acquire two diamond concessions, Natal I and Natal II, in Venezuela.
Under the definitive stock purchase agreement, Americas Diamond has offered an aggregate of 1,221,695 shares in the company and now owns 100% stake in SUDAM.
In addition to an investment of $13m to date on the two diamond concessions, SUDAM also owns an advanced diamond processing and recovery plant in South Africa.
To acquire Compania Minera Adamantine (CMA), a Venezuelan company which presently holds the diamond concessions, Americas Diamond is required to issue shares worth $13m – 50% on receipt of production permits and 50% after commencement of commercial production.
The company will now implement a final bulk-sampling program on the Natal I and II diamond concessions in the Guaniamo district.
Americas Diamond CEO Daniel Martinez commented that the company is pleased to have completed the acquisition.
"The completion of this acquisition in addition to our recently announced equity financing agreement really puts us in a strong position to be able to fully explore and develop these concessions, which we believe have the potential to host major ore bodies of diamonds.
"We will be announcing more information and a formal development plan in the very near future," Martinez added.