JOHANNESBURG (miningweekly.com)  – Stricken JSE- and TSX-listed BRC Diamondcore, which reported a deficit of $112-million to June, is hopeful of a positive appeal against the liquidation of Diamond Core, the holding company for all its South African assets.

The company said on Tuesday that an application for leave to appeal the liquidation order had been lodged with the Northern Cape High Court, based on suitor KIG Mining providing cash to settle River Corporate Finance's claim. KIG has agreed to buy the company's alluvial South African assets for $10,7-million in cash and shares.

Adviser River Corporate Finance brought the liquidation to recover $1-million in fees, with Diamondcore disputing the claim, and countersuing for the return of R2-million.

BRC Diamondcore said that it intended to petition the Supreme Court of Appeal directly if the Northern Cape High Court failed to grant leave to appeal.

Engaged in the acquisition, exploration and development of diamond properties in the Northern Cape and in the Democratic Republic of Congo (DRC), the company reported a working capital deficit of $14,9-million and a net $62 000 cash decrease in the three months to June 30.

The company said that its management was exploring all available options to secure additional funding through equity and debt financing, the sale of selected business units, the sale of noncore assets and the establishing of strategic partnerships.

The services of all South African operational employees had been terminated and only a skeleton staff remained to attend to administration and asset preservation.

Bulk sampling at Paardeberg East, Silverstreams and De Kalk in South Africa and at Tshikapa and the Northern Project in the DRC, had been placed on care-and-maintenance.

The company said that DRC gold explorer Banro Corporation, a significant BRC Diamondcore shareholder, had guaranteed a $6-million loan facility to the company and would like to be extricated from that guarantee as soon as possible.

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