Third Time Lucky: Firestone Finally Sells Botswana Operation

By John Jeffay / July 05, 2021 / www.idexonline.com / Article Link

(IDEX Online) -  Firestone Diamonds has finally managed to offload its Botswana operation after six years and two failed bids.The UK-based miner accepted a a one-off upfront payment of just $50,000 from Botswana-based Visionary Victor Resources Proprietary Limited. The new owners will acquire the BK11 kimberlite diamond mine in the Orapa/Letlhakane kimberlite district, as well as Firestone's wholly-owned subsidiary Firestone Diamonds Botswana (PTY) Ltd and its 90 percent interest in Monak Ventures (PTY) Ltd.BK11 is forecast to have another seven years' worth of open pit mining, with an estimated yield 569,610 carats. It has been on care and maintenance since 2012.Firestone first agreed a sale of its Botswana operation back in 2015, saying it wanted to focus solely on its flagship asset, the Liqhobong diamond mine, in Lesotho.Canada-based Tango Mining agreed a purchase, but failed to secure finance for the $8m cash deal.Then in 2017 there was another Canadian bid, by Amulet, a group of private investors led by former De Beers Diamond Trading Company CEO Gareth Penny and Diacore Diamond Group. The $5.1m cash deal remained on the table for a year but was never completed.Firestone said it was pleased to announce that it had entered into a binding share sale agreement."Visionary Resources will assume the environmental liability currently associated with the BK 11 mine." It said in a statement."Subject to regulatory approvals within Botswana, the transaction is expected to be completed in the fourth quarter of 2021."Pic courtesy Firestone

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