India Resources acquires diamond leases

Diversified minerals developer, India Resources has extended its footprint in....

  Diversified minerals developer, India Resources has extended its footprint in India, with the acquisition of prospective diamond leases.The company has exercised its option over the AMIL Mining India Private Limited leases and is moving to acquire 100 percent of the controlling company. The leases were previously controlled by Dwyka Resources, with an agreement by BHP Billiton. This agreement was terminated earlier than its formal November 2007 finish date, which has allowed India Resources to exercise its option ahead of schedule. Under the terms of the option agreement, a 2.5 percent royalty will be due to Dwyka on production, with no up-front acquisition cost payable. India Resources Chairman, Michael Kiernan said the acquisition of the leases expanded and diversified the company’s presence in a pivotal growth market. “India Resources has taken the opportunity to acquire several prospective leases in the vicinity where kimberlite occurrences are known to occur,” Mr Kiernan said. “Clearly India is a key growth market – it is one of the world’s largest economies, with a growth rate of six percent expected over the coming years. It is also the home of diamonds and remains the world’s largest diamond processor,” he said. Mr Kiernan said work would now begin over the newly acquired diamond properties, initially at the Bhandara Project where India Resources controls more than 8,000sqkm in Orissa along the margin of the Bhandara Craton. Kimberlite occurrences have been recorded here over 300km of strike, including that at Nuapada where De Beers Exploration have an active lease holding. The company will also carry out a reconnaissance stream sampling program, with samples to be analysed for microdiamonds and indicator minerals, in the first and second quarters 2007-2008.