ACR had rights to mine diamonds in Marange but government cancelled its licence saying they had inappropriately acquired it.
The company has stopped operations and two other companies — Mbada and Canadile — have partnered with the Zimbabwe Mining Development Company to extract the precious stones.
ACR, which has continued to be optimistic and kept shareholders informed on the events surrounding the Marange issue, a fortnight ago concluded a contract with a company to assist them in prospecting for alternative mineral reserves.
ACR signed an agreement with Aero Mags to have the latter supply the diamond mining company with survey services over an area prospective for diamonds.
“The area to be investigated is unrelated to the company’s interest in the Marange diamond fields,” said ACR.
Aero Mags specialises in aeromagnetic survey based on an aerial survey of the earth’s magnetic field.
Under the contract, ACR is expected to pay US$151 792 whether the survey is successful or not while US$115 890 is payable conditional upon discovery of a kimberlitic pipe, that is a rock that has a probability of containing diamonds.
ACR would pay an additional US$115 890 in the event of a discovery of diamonds which can be economically mined.
The AIM listed company (London Stock Exchange’s international market for smaller growing companies) has seen a lot of movement in its share price since the beginning of the year.
It opened the year trading at £14,50 (US$22,03) per share before sliding to £8,62 at the beginning of March.
This drop in share price was at a time when the
company was making efforts to resume operations
at Marange through effecting a High Court order which confirmed their right to the diamond fields, which was issued last September.
The share price started to pick up in the second week of March and it was trading at £11,75 at the close of business on Wednesday.
Shares traded have also been fluctuating with the highest (more than 8 million) two weeks ago.
A sharp increase in the number of shares traded two weeks ago saw one of the company’s major shareholders, London and Amsterdam Trust, increase its stake to 6,07% from 4,93% at the beginning of the year.
It is not clear from whom London and Amsterdam Trust bought the ordinary shares amounting to 1,14% of the issued shares.