Botswana Diamonds Loss Widens Amid Challenges

RAPAPORT... Botswana Diamonds' loss grew over the past financial year asthe company faced several challenges to its operations, it reported this week. The miner recorded a loss of GBP 630,009 ($806,460)  for the 12 months ending June 30, versus adeficit of GBP 161,868 ($207,200) the previous year, it said Monday. Thecompany incurred an impairment charge of GBP 179,524 ($229,800) at its SunlandMinerals asset as it relinquished some of the licenses it held relating to theproject. The miner was originally a 50% owner in Sunland, with Alrosaholding the remainder. However, the Russian miner pulled out of the project lastweek, with Botswana Diamonds buying out Alrosa's share. Currency fluctuations also hit Botswana Diamonds' bottomline, the company said. The effect "represent[s] a material uncertainty thatmay cast doubt on the group's ability to continue as a going concern," it said. To continue work on its exploration projects, BotswanaDiamonds will need to raise additional funds, it said. "Although it is not possible at this stage to predict whenfinancing efforts will be made, the directors are confident that they will beable to raise additional finance as required to meet the group's committedobligations as they fall due," the miner added. Image: Botswana Diamonds exploration site. (Botswana Diamonds)