Botswana – Firestone Diamonds, the AIM-quoted diamond company, has entered into an agreement to sell its Botswana operations, including its interest in the BK11 mine, to Tango Mining for USD$8 million.
Firestone will use the proceeds of the disposal to provide general working capital for the construction and development of its Liqhobong mine in Lesotho.
Tango Mining is a Canadian diversified junior mining company, with a diamond (Oena project) and coal (Dorstfontein and Forzando projects) in South Africa.
Completion is subject to, inter alia, satisfaction of the following conditions within six months of the date of the agreement:
· Tango Mining raising the balance of the consideration, being $7.35 million;
· the parties gaining approval from the Botswana Competition Authority;
· the parties obtaining Botswanan ministerial approval for the transfer of the controlling interest in Monak; and
· Tango Mining receiving the requisite approvals by the TSX Venture Exchange in respect of the disposal.
As at 31 December 2014, the net assets for the Botswana companies were $10.7 million and for the year ended 30 June 2014, they incurred a loss of $0.7 million before foreign exchange losses on conversion from local currencies.
“The disposal of the Botswana operations, including the BK11 mine, enables us to focus solely on our flagship asset, the Liqhobong diamond mine, in the Kingdom of Lesotho, where we will commence production during Q4, 2016,” says Stuart Brown, CEO of Firestone.