Kimberley Diamonds has completed acquisition of Argyle Smoke Creek Alluvial diamond project in the East Kimberley Region of Western Australia from Venus Metals.

The project includes 22 prospecting licenses and one mining lease application.

Currently, Kimberley Diamonds operates the Ellendale diamond project in the West Kimberley region.

The sale Consideration was $1m including $250,000 in cash and 625,000 Kimberley Diamonds shares at a deemed issue price of $1.20.

Kimberley Diamonds executive chairman Alex Alexander said that the acquisition provides Kimberley Diamonds with a second potential source of rough diamonds.

"In addition to this acquisition, we are making positive progress on the completion steps for the acquisition of Mantle Diamonds and the Lerala diamond mine, which we’ve previously announced to the marke," Alexander added.

"Kimberley Diamonds is well advanced in its strategy of becoming a diversified diamond producer."