DiamonEx Sales Majority Holding In Botswana Mine

DiamonEx Limited agreed to sale 80 percent of its holding in DiamonEx Botswana Limited (DBL) to Fleming Asset Management Botswana. In Addition, DiamonEx will transfer to the buyers its diamond exploration tenure in the U.S.

DBL’s main asset is the Lerala diamond mine. DBL has been placed under judicial management by the High Court of Botswana. This order provided DBL with a period of immunity from claims from its creditors.

The Australian diamond miner said on Friday that it has finalized the key terms for the conditional agreement. “DiamonEx will effect the novation of all receivable loans and advances made by DiamonEx to DBL to an entity nominated by FAMB,” the company said. These loans and advances total about A$23 million (US$15.8 million).

As part of the agreement, FAMB will loan A$0.5 million (US$343,000) to DiamonEx. The loan will be for a term of 24 months with 15 percent interest. The loan will be secured by a mortgage of DiamonEx’s DBL shares.

According to the miner, while DBL’s total debt of can not be determined at this stage due to factors which are yet to be finalized under the judicial management process, this should enable DBL to settle its immediately owing debts and provide sufficient working capital to enable the Lerala diamond mine to either stay on care and maintenance for at least two years, or to commence production if and when a commercially attractive diamond off - take contract is secured.