DIAMONDS — Contiki joins Molopo project

Juniors Layfield Resources (LAY-V) and Contiki Resources (TKI-V) have teamed up to explore the Molopo diamond property in Botswana.

The two companies recently concluded an agreement allowing Contiki to earn a 60% interest in one of eight exploration licences that are under option to Layfield from Southern Africa Minerals (SAF-T). That pre-existing agreement gave Layfield the right to earn a 75% interest in the entire 3,382-sq.-km property by spending US$5 million on exploration over five years, as well as issuing shares.

To earn its interest, Contiki must spend US$4.75 million on exploration over the next five years and issue a total of 1 million shares in five annual installments. Layfield retains a 15% interest in the licence and can count those expenditures toward its own obligations.

Previous exploration at Molopo identified 55 kimberlite pipes, 13 of which are diamondiferous. As well, airborne magnetic targets have been explored by ground magnetic surveying.

Layfield plans to drill six of the geophysical anomalies, while Contiki drills 12.