Australian company begins prospecting for diamonds in Mozambique

5 August 2014

The OGI Group, previously Golden Gate Petroleum, has acquired a 50.7 percent stake in a licence to prospect for diamonds in Mozambique, the group announced in a statement released by the Australian Securities Exchange.

The group informed that the Save River diamond project includes a 40 km by 10 km gravel deposit and announced that sample gathering should begin this month and finish before the end of the year.

The statement specifies that the group signed a purchase agreement with the current shareholders of Save River Diamonds Pty Ltd to buy 78 percent of the paid-up capital, for an effective stake of 50.7 percent in licence 4969L and the right of first refusal to acquire a 51.1 percent stake in licence 4525L.

In exchange, the OGI Group will grant Save River Diamonds Pty Ltd a loan facility up to the amount of US$1.7 million.

The Save River diamond project is situated in southern Mozambique near the border with Zimbabwe, where various surface materials potentially associated to alluvial diamonds have been mapped.

The OGI Group is listed on the Australian Securities Exchange. It is involved in oil and gas prospecting projects in the Persian Gulf states and in the United States of America. (macauhub/MZ)