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Firestone Diamonds Sells Botswana Assets for $8M
Jul 9, 2015 8:53 AM
By Avi Krawitz
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RAPAPORT... Firestone Diamonds has agreed to sell its Botswana operations, including its 90 percent stake in the BK11 mine, to Tango Mining for $8 million in cash.
"The disposal of the Botswana operations, including the BK11 mine, enables us to focus solely on our flagship asset, the Liqhobong diamond mine in Lesotho, where we will commence production during the fourth quarter of 2016," said Stuart Brown, Firestone’s CEO.
Proceeds from the sale will be used for general working capital as Firestone continues with the construction and development of Liqhobong.
Tango will pay $350,000 to Firestone immediately and $300,000 will be placed in escrow as a deposit by no later than September 30. The remainder will be received on completion of the sale, which is subject to Tango raising the $7.35 million balance required, approval from the Botswana Competition Authority and further pending approvals from the Botswana government and the Toronto Stock Exchange Venture Exchange where Tango is listed.
A “drop dead” deadline has been set for six months from the date of the agreement.
Firestone reported that its Botswana companies incurred a loss of $700,000 in the fiscal year that ended on June 30, 2014, while its assets were valued at $10.7 million at the end of the calendar year.
Tango is a Canadian company that has four thermal coal, metallurgical and processing plant and engineering contracts in South Africa. The company also holds an interest in Oena, a dormant alluvial diamond property in the Northern Cape Province of South Africa.
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Tags:
Avi Krawitz, diamonds, Firestone Diamonds, Rapaport
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