Gibb River Diamonds Limited announced the sale of a two year Option agreement with Burgundy Diamond Mines Limited, which confers the right for Burgundy to acquire 100% of the Ellendale Diamond Project, WA. This Option covers all tenements pegged by GIB in the Ellendale Diamond Province, including over the historic Ellendale Diamond Mine and Blina Diamond Project and the associated data. Burgundy is Western Australian based company with a highly-credentialed management team, focused on global diamond exploration and project development with a vision to become a leading mid-cap diamond producer. Burgundy intends to extract maximum value from the natural beauty of the Ellendale stones via its own marketing initiatives and re-establish Western Australia as a supplier of unique high-value diamonds to luxury goods markets worldwide. The total transaction consideration is $6.7 million in cash, 16 million BDM shares, and a 1.5% gross revenue royalty. The cash and shares component consist of three staged payments over two years; with the third payment to exercise the Option. The second and third payments are required to proceed with the transaction and are at Burgundy's election: First Payment: upon entering into the Option agreement, BDM is paying GIB AUD 1.7 million in cash and issuing to GIB 4 million fully paid ordinary shares in BDM; Second Payment: within one year of entering into the Option, BDM to pay GIB AUD 1 million in cash and issue to GIB 5 million fully paid ordinary shares in BDM; Third Payment: within two years of entering into the Option and upon the exercise of the Option to purchase the Ellendale Diamond Project, BDM to pay GIB AUD 4 million in cash and issue to GIB 7 million fully paid ordinary shares in BDM. BDM will also pay GIB a 1.5% gross revenue royalty on the diamonds obtained from the tenements, including during the Option period. All shares issued to GIB in respect of the transaction will be subject to a 6-month voluntary escrow period commencing on the date of issue. Should Burgundy elect not to proceed with the payments to GIB detailed in (ii) and (iii) above, then (excepting conditions precedent), the Option will not have been exercised and GIB will retain the Ellendale Diamond Project 100%.