JOHANNESBURG (miningweekly.com) – Aim-listed ASA Resources’ 73%-owned subsidiary SouthernEra Diamonds will sell its Klipspringer diamond mine, in South Africa, to mining exploration company Greenhurst Mining for R23-million.
Klipspringer has been making a loss of at least R1-million a month.
The slimes retreatment project, which used to generate reasonable revenues to cover costs, was terminated in April owing to nonperformance.
"Grades at Klipspringer were not being achieved and the project was having a negative impact on the group's cash flow. The prospects of restarting the mine were unlikely owing to historical complications of the black economic empowerment ownership structure, a requirement under the South African Mining Charter,” ASA CEO Toindepi Muganyi said on Monday.