Kimberley Diamonds Limited completed the acquisition of Mantle Diamonds Limited, which included the Lerala diamond mine in Botswana. Kimberley Diamonds owns and operates the Ellendale diamond mine in Western Australia where production averages about 120,000 carats per year. Lerala's operations will target a production rate of approximately 400,000 carats per year once the asset is brought out of care and maintenance.

Kimberley Diamonds' chairman, Alex Alexander, said, “The Lerala diamond mine provides Kimberley with an excellent near-term development opportunity beyond our flagship Ellendale diamond project and our recently acquired Argyle Smoke Creek alluvial diamond project. Lerala has great potential and we are planning to bring the mine back into production this year. Rough diamond prices are on the rise and Kimberley Diamonds is well positioned to capitalize on this. This acquisition is in line with our growth strategy of becoming a diversified diamond producer and we will continue to look for further acquisition opportunities.”

The Lerala project provides the junior explorer with a foothold in Botswana. Kimberley Diamonds estimated that Lerala contains probable reserves of 8.38 million tonnes of ore with an average grade of 29.68 carats per hundred tonnes (cpht). The current life of mine is six years at full production levels of 400,000 carats. Lerala is situated in northeastern Botswana, 34 kilometers north of the Martin’s Drift Border Post with South Africa and is comprised of five diamondiferous kimberlite pipes. Mantle operated the mine between February and July 2012, producing 73,403 carats before it was placed on care and maintenance.