JOHANNESBURG (miningweekly.com) – Aim-listed Firestone Diamonds has entered into a conditional option agreement to potentially sell its Botswana assets to Gareth Penny- and Diacore Diamond-led special purpose vehicle Amulet Diamond for $5.1-million in cash.
The option, effective from June 1 for up to 14 months, included Firestone’s wholly owned subsidiary Firestone Diamonds Botswana, its interest in the BK11 mine and its 90% interest in Monak Ventures.
If Amulet exercises the option, $100 000 will be immediately payable, with the balance placed in escrow within ten days.
The sale remains subject to conditions, including approval by the Botswana Competition Authority and Ministerial approval for the transfer of the controlling interest in Monak to Amulet.
Amulet will fund the construction and operation of a bulk sample plant and carry out of a bulk sample programme at the BK11 mine during the option period to further assess the deposit.
Firestone will be entitled to 10% of the proceeds, after royalties and agreed expenses, from the diamonds sold from the bulk sampling programme during this period.
In addition, Amulet will contribute up to $30 000 a month towards BK11's care and maintenance costs.