GABORONE, July 7 (Reuters) - Britain's Firestone Diamonds
plc has agreed to sell its Botswana mine to a local company for
just $50,000, after previous attempts to offload the mine it
valued at $10 million in 2014 fell through.
Firestone put BK11 mine on care and maintenance in 2012,
citing operational challenges and weak market demand for the
precious stones.
In a statement, Firestone said it had entered into a binding
agreement with Botswana-registered company Visionary Victor
Resources to sell the mine for a one-off upfront payment of
$50,000.
"In addition, Visionary Victor Resources will assume the
environmental liability currently associated with the BK11 mine.
The transaction is expected to be completed in the fourth
quarter of 2021," Firestone said.
Botswana company registry records show that Visionary Victor
Resources was incorporated in January 2021 and is 100% owned by
Atang Makgekgenene, a local entrepreneur.
Two previous attempts by Firestone to sell BK11 failed, with
a proposed $8 million deal in 2015 and a $5.1 million one in
2017 collapsing for different reasons.
Firestone has previously said the sale of the Botswana
operations would enable it to focus on its flagship asset, the
Liqhobong Diamond Mine in Lesotho.
In 2014, Firestone estimated the mine had 11.5 million
tonnes of production over a mine life of 10 years, at an average
grade of 8.5 carats per hundred tonnes.
Botswana currently has only one operating diamond mine
outside of the De Beers stable, with two others including BK11
currently on care and maintenance.
(Reporting by Brian Benza
Editing by Mark Potter)