JOHANNESBURG (miningweekly.com) – Aim-listed Firestone Diamonds will continue to seek shareholder value for its Botswana assets after its $8-million disposal to potential buyer Canadian diversified junior miner Tango Mining fell through.
The diamond development company on Monday said Tango had been unable to meet the conditions of the sale agreement by the revised drop-dead date, leading to a lapse in the disposal agreement.
“While the company is currently focused on the completion and commissioning of its Liqhobong diamond mine, in Lesotho, with initial production expected to commence early in the fourth quarter, management remains committed to seeking ways of advancing or unlocking shareholder value from its Botswana assets, which the company continues to believe has value,” Firestone said in an update to shareholders.
In August, Firestone once again agreed to extend the due date to allow Tango to finalise its proposed $30-million loan commitment with California-based financial lender Vanderbilt Commercial to finance the acquisition of the Botswana asset and provide the capital to restart the idled BK11 kimberlite diamond operations.
However, Firestone’s cash position remains unaffected.
“The company continues to forecast that it will have cash of approximately $9-million as at the end of December 2016. This does not include the $15-million standby facility available to the company or the proceeds of the disposal, which had not been included in the cash flow projections,” Firestone assured.
Edited by: Creamer Media Reporter
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