KIMBERLEY Diamond Company and its subsidiary Blina Diamonds have executed an agreement with the Bunuba people in relation to the area of the Ellendale Mining Lease and surrounding tenement areas covering about 2,000 square kilometres in the West Kimberley region over an Indigenous Land Use Agreement.
The agreement is conditional on the approval of Kimberley shareholders by April 30.
With this agreement Bunuba and Kimberley have entered into a long-term relationship to work together cooperatively to allow for the uninterrupted grant of tenements and the conduct of operations in the area by Kimberley and its subsidiaries free of Nativte Title hinderances.
All Aboriginal heritage matters will be dealt with as quickly as possible so mining operations can proceed without delay.
The agreement applies to all exploration, mining and other tenements, rights to mine and all ancillary rights and interests of any kind in the area that are held or applied for by Kimberley, Blina or their subsidiaries now or in the future.
Under the agreement Bunuba will be entitled to receive:
An annual payment equal to the greater of $150,000 or 5 per cent of the total dividend paid by Kimberley to its members when it mines any part of the Ellendale Mining Lease on a commercial basis in any year;
A gross royalty equal to 1.4 per cent of the total revenue from all mines established in the area by the Kimberley Group and operated on a commercial basis with the exception of any current or future mines on the Ellendale lease;
250,000 Kimberley ordinary shares;
Five million options to subscribe for Kimberley shares exercisable at $2 within five years of their grant. The right to exercise these options is conditional on registration of the grant;
100,000 Blina ordinary shares; and
Five million options to subscribe for Blina shares, exercisable at 60 cents withing five years after Blina is admitted to the official ASX list.