BRC DiamondCore, the African-focused diamond explorer active in South Africa and the Democratic Republic of the Congo (DRC), on Friday announced that Rio Tinto has agreed to fund exploration of certain parts of the company's Tshikapa kimberlite project in the DRC.
A letter of intent signed between the two companies proposes that Rio Tinto will have the right, under a staged earn-in arrangement, to earn a 75% interest in a joint venture company which would hold the ownership interests in the JV property, while BRC DiamondCore will hold the remaining 25% interest.
The proposed earn-in arrangement is subject to various conditions, including completion of due diligence and negotiation and execution of a definitive agreement between the parties.
A drilling programme on the JV property is expected to commence this month.
