Under the terms of the deal, Kimberley would issue some 13.5-million shares to Mantle shareholders for full ownership of the company.
Kimberley Diamonds chairman Alex Alexander said the acquisition will boost Kimberley’s aim to become a leading diamond producer with several operating mines supported by long-term life extension opportunities.
"We aim to consistently acquire projects with promising prospects at attractive valuations, with significant upside potential that can be realised quickly and cost-effectively," Alexander added.
Located 50km due west of the Martin’s Drift Border Post with South Africa in east Botswana, the Lerala diamond mine features five diamondiferous kimberlite pipes totalling some 6.66ha in size, along with a 230 tonnes per hour processing and recovery facility.
"Lerale has all of these qualities and represents an important incremental step in the company’s growth," Alexander continued.
Targeting a production of about 400,000 carats per year, Lerala mining is expected to be restartd in 2014 by Kimberley.
