The Canadian company’s new services partner will be developing the alluvial mine using Bourevestinik X-ray machines (BVX) and/or pan plants.
Additionally, it will provide and maintain all plant and equipment at its own expense. The contract extends for 60 months.
Once mined, Oena’s diamonds will be sold in South Africa via a tender facility, with 75% of gross income (less commission) of the operation’s net diamond sales going to Bluedust. Any individual stone generating in excess of US$500,000 gross selling price (less commission), Bluedust will receive 70%.
Oena’s mining right consists of 8,800 hectares and corresponding infrastructure and processing equipment.
The deal is now subject to due diligence by Bluedust, a phase due to be completed by year-end.
The contractor will be conducting a site investigation for mineability and diamond-bearing potential. Tango noted that its work could include trial mining with the BVX and other equipment.
The miner also said the agreement with Bluedust will not have an effect on its existing deal from July with Consulmet to operate the equipment of TML Equipment Solutions.