BCL liquidation poser for Botswana diamond exploration JV
Correspondent | Tuesday June 27, 2017 15:59
The Maibwe JV consists of a block of ten licences, which are located in the Central Kalahari region of the country. The JV partners include Botswana government-owned nickel and copper producer BCL (51% ownership stake), local Botswana group Future Minerals (20% ownership stake) and private South African venture Siseko (29% ownership stake), in which BOD has a 51% ownership stake.
Therefore, BOD has a net 15% interest carry through its exploration work in the project. Four kimberlites containing diamonds were discovered in 2015 by BCL, which is the majority shareholder and operator. However, BCL is currently in provisional liquidation.
Campbell tells Mining Weekly that BOD is currently in discussions with the company’s liquidator, professional services firm KPMG, to resolve the corporate issues associated with the JV.
He says that, while the provisional liquidation of BCL does not effect the viability of the Maibwe JV, it does, however, place the project in “suspended animation”. Campbell notes that, owing to the “high interest results” that were recorded on the Maibwe JV previously, when BCL was undertaking drilling on the project, the company wants to progress the project.
“We feel that it is in the interests of our shareholders to do so. Botswana Diamonds is joined by the JV’s other minority rights holders who hold the same view,” he states.
Campbell comments that some of the proposals to resolve the BCL ownership issue include, among others, for the company to acquire BCL’s stake in the project or to bring in a new partner to the project, who would then buy BCL’s stake.
However, he says that the company is currently evaluating these considerations and will make an announcement in due course.