Firestone Diamonds PLC Update on the sale of the Botswana operations (5202J)
September 12 2016 - 1:01AM
UK Regulatory
TIDMFDI
RNS Number : 5202J
Firestone Diamonds PLC
12 September 2016
12 September 2016
Firestone Diamonds plc
("Firestone", or the "Company") (AIM: FDI)
Update on the sale of the Botswana operations
Firestone Diamonds plc, the AIM-quoted diamond development
company, has been informed by Tango Mining Limited ("Tango Mining")
that it has not been able to meet the conditions of the conditional
sale agreement ("CSA") by 9 September 2016 (the "Revised Drop Dead
Date"), for the disposal of the Company's Botswana operations to
Tango Mining (the "Disposal"). Accordingly, the CSA has lapsed and
the Disposal will not proceed.
The Company's Botswana operations, including Firestone's
interest in the low-grade high-value BK11 mine, are currently under
care and maintenance. Whilst the Company is currently focussed on
the completion and commissioning of its Liqhobong Diamond Mine in
Lesotho with initial production expected to commence in early Q4
2016, management remain committed to seeking ways of
advancing/unlocking the shareholder value from its Botswana assets,
which the Company continues to believe has value.
The Company continues to forecast that, as previously announced,
it will have cash of approximately US$9.0 million as at the end of
December 2016. This does not include the US$15.0 million standby
facility available to the Company or the proceeds of the Disposal,
which had not been included in the cashflow projections.
Accordingly, the Company believes that there will be no impact on
the Company's cash position as a result of the Disposal not
proceeding.
For more information contact:
+44 (0)20 8741
Firestone Diamonds plc 7810
Stuart Brown
+44 (0)20 7409
Strand Hanson Limited (Nomad) 3494
Stuart Faulkner
Richard Tulloch
James Dance
Macquarie Capital (Europe)
Limited (Joint Broker)
+44(0)20 3037
Raj Khatri 2000
Nick Stamp
Mirabaud Securities LLP (Joint
Broker)
+44 (0)20 7878
Rory Scott 3360
+44 (0)20 7878
Ed Haig-Thomas 3447
Tavistock (Public and Investor +44 (0)20 7920
Relations) 3150
+44 (0)7788 554
Jos Simson 035
Emily Fenton
Background information on Firestone
Firestone is an international diamond development company with
operations focused on Lesotho. Firestone is currently in the
process of developing the Liqhobong Mine Development Project in
Lesotho to become a one million carat per annum producer.
Lesotho is emerging as one of Africa's significant new diamond
producers, and hosts Gem Diamonds' Letseng Mine, Firestone's
Liqhobong Mine, as well as Namakwa Diamonds' Kao Mine and the
Mothae development project.
For more information please visit:
www.firestonediamonds.com.
**ENDS**
This information is provided by RNS
The company news service from the London Stock Exchange
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