Vaaldiam to double production from Duas Barras

Vaaldiam Resources Ltd., South America’s largest diamond producer, is all set to acquire the neighbouring mine and extensive concessions of RST Recursos Minerais Ltd (RST), which is adjoining its Duas Barras mine in the State of Minas Gerais, Brazil.

Vaaldiam has entered into an agreement with RST to acquire a second 2,000 tonne per day diamond recovery plant and new mining fleet which will immediately increase diamond production at Duas Barras.

Vaaldiam has agreed a cash payment of US$9 million to RST and the issuance of common shares of Vaaldiam in the amount of US$1.5 million.

With this acquisition, Vaaldiam can expand operations in the historic Diamantina diamond district.

Ken Johnson, President and Chief Executive Officer of Vaaldiam, said that our acquisition of RST is in line with our strategy to consolidate the Brazilian diamond sector, and significantly strengthens Vaaldiam’s position as the dominant diamond producer in South America. The RST acquisition immediately expands our Diamantina district mining operations and allows us to reach our target of 100,000 carats of annual production for the district sooner than planned.

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