Mining Weekly reports that BRC DiamondCore has entered into an agreement with KIG Mining for the sale of the former’s alluvial diamond projects in South Africa. The price tag is $10,7 million.

The BRC DiamondCore diamond exploration company is selling its Silverstream, De Kalk, Muishoek, Sanddrift, and Uitdraal diamond mining projects in addition to its processing plant, diamond mining fleet and equipment.

According to BRC DiamondCore, KIG plans to resume diamond mining operations at the Silverstreams project, using the staff previously employed there.

Under the terms of the agreement, $2 million cash is to be paid to BRC DiamondCore in two payments. The first payment, of $500 000, will be made no later than a month after the hand-over of operations at the Silverstream alluvial diamond project, and the balance is to be paid no later than two months after the handover.

KIG will reportedly also issue 18-million ordinary shares to BRC DiamondCore, at a price of $8,6-million, as well as $100,000 to be paid by KIG directly to existing creditors in order to facilitate the resumption of diamond mining operations at Silverstream.