Australian mining company Tychean Resources plans to acquire a major stake in Blom Diamonds, taking its first steps into the diamond industry, reports say. The acquisition will involve Tychean Resources will acquire Blom Diamonds’ Blom Diamond Cutting Works and Ernest Blom Diamonds or 74 percent worth US$ 4.1 million. There would be further additions based on achievement of certain targets.

Blom Diamonds is headed by Ernie Blom who is also the president of the World Federation of Diamond Bourses (WFDB). He will take on the role of MD at Tychean Resources after the deal is closed.

Based on certain approvals the deal is expected to be closed within 90 days, as per reports.