Kimberley Diamonds Ltd. is buying all of Mantle Diamonds Ltd. for almost 13.6 million new ordinary shares. Mantle Diamonds owns the Lerala diamond mine in eastern Botswana, which has five diamondiferous kimberlite pipes discovered by De Beers around 20 years ago with indicated resource estimates of around 3.1 million carats and probable reserves of almost 2.5 million carats. The deal will take place after it has carried out due diligence and a capital restructuring of Mantle Diamonds, the firms said.

Kimberley Diamonds has said that the operation requires engineering enhancements to increase recovery and cut operating costs.

The diamond company hopes to recommence mining next year and has set an annual production target of 400,000 carats. Upgrades are estimated to have a cost of $10 million.