India Resources (IRL) has signed a joint venture agreement over its diamond projects with India-based private firm Vajra Diamond Mining.

Under the agreement, Vajra will pay $500,000 for an 80% stake in IRL’s subsidiary Amil Mining India.

Vajra will also pay $500,000 to IRL from gross revenue received by AMIL during the first year of mining from any deposit discovered in the AMIL project area.

IRL has an option to undertake the mining of any deposit found.

IRL’s diamond projects include three areas of granted tenure in areas with known diamondiferous kimberlites in the Indian states of Orissa, Andhra Pradesh and Madhya Pradesh.