Firestone Diamonds' sale of its Botswana operations to Tango Mining will not go ahead.
Firestone says it has been informed by Tango Mining that it has not been able to meet the conditions of the conditional sale agreement by 9 September, the revised drop dead date, and the agreement has lapsed.
The company's Botswana operations, including Firestone's interest in the low-grade high-value BK11 mine, are currently under care and maintenance.
Whilw the xompany is currently focused on the completion and commissioning of its Liqhobong diamond mine in Lesotho with initial production expected to commence in early Q4 2016, management remains 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.