Diadem Resources Ltd has announced that it has entered an agreement to buy a yet-unnamed private diamond company that holds significant assets in an area of central Africa that has produced both diamonds and gold.

Diadem Chairman and CEO Amie Bertand said that the area to be acquired – which extends over more than 25,000 square kilometers – has already produced "viable rates" of high-quality rough diamonds.

Bertrand said that the planned acquisition, which is expected to be inked by December 2010, provides Diadem with another diamond project that had the potential to become a commercial producer "in a short period of time."

The unnamed company is currently in talks with third parties to purchase more mineral assets in Zambia and the Democratic Republic of Congo.