Firestone Diamonds Agrees to Sell Botswana Operations
July 09, 15
(IDEX Online News) – AIM-listed Firestone Diamonds plc is selling its Botswana operations, including its interest in the BK11 mine, to Tango Mining Limited for $8 million in cash.
As part of the agreement, Tango Mining will acquire Firestone's wholly owned subsidiary Firestone Diamonds Botswana (PTY) Ltd and its 90-percent interest in Monak Ventures (PTY) Ltd.
Firestone said the proceeds of the sale will provide it with general working as it continues with the construction and development of the Liqhobong Mine in Lesotho.
"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," said Firestone CEO Stuart Brown.
According to the terms of the agreement, Tango Mining will pay $0.35 million immediately, a further $0.30 million is to be paid by the end of September with the remainder to be received upon completion of the deal.
Tango Mining has also agreed to pay into escrow the continuing cost of BK11's care and maintenance program up to $40,000 per month.