On October 10, 2008, A Heads of Agreement was signed between Boteti and the Government of Botswana, outlining terms under which the Government will grant a mining license for the AK06 deposit. %% The Agreement states that license will be issued with effect from 10 October 2008 for 15 years up to 9 October 2023. Production will commence within 30 months of 10 October i.e. from 9 April 2011, all of Boteti’s production will be sold through Diamond Trading Company Botswana, Government has undertaken that power will be supplied from the national grid. In the event of any need for the mine to generate additional power, Government undertakes to waive the Road Levy on imported diesel fuel until 2013. The Government will not take equity in the project, and tax rates applicable to the project will be the variable income tax rate specified in the Twelfth Schedule of the Botswana Income Tax Act plus the normal royalty specified in the Botswana Mines and Minerals Act. %% Chairman of Boteti, Tony Guthrie, said, “We are excited about this new development. The directors of Boteti will continue to do everything under their control to ensure that the full economic value of this deposit is realised for the benefit of the shareholders and Botswana”. %% The company will undertake development of the mine in two phases and at an investment of around Pula 2.76 billion, during the 15-year period. Production at the mine is estimated to be around 600 000 carats per annum during the first three years, and will be increased to 880 000 carats per annum over the remaining lifespan of the mine, estimated to be of seven years. At the end of the 10-year tenure, total production will amount to around 8.1 million carats with an average dollar per carat to Boteti of approximately US$ 138 per carat. %% The project is expected to hype employment and business opportunities in Botswana, reaffirming the country’s position as an industry leader and as a major contributor to domestic economy. Employment levels at Boteti too will vary depending on the stage in the project life. In Phase 1, the construction stage will entail 850 people being employed, while in the operational stage of the Phase, numbers will come down to 274 permanent employees.