JOHANNESBURG (miningweekly.com) – Stricken
JSE- and TSX-listed BRC Diamondcore,
which reported a deficit of $112-million to June,
is hopeful of a positive appeal against
the liquidation of Diamond Core,
the holding company for all its South African assets.
The company said on Tuesday that
an application for leave to appeal
the liquidation order had been lodged with
the Northern Cape High Court,
based on suitor KIG Mining providing
cash to settle River Corporate Finance's claim.
KIG has agreed to buy the company's alluvial
South African assets for $10,7-million
in cash and shares.
Adviser River Corporate Finance brought
the liquidation to recover $1-million in fees,
with Diamondcore disputing the claim,
and countersuing for the return of R2-million.
BRC Diamondcore said that it intended
to petition the Supreme Court of Appeal
directly if the Northern Cape High Court
failed to grant leave to appeal.
Engaged in the acquisition, exploration
and development of diamond properties
in the Northern Cape and in
the Democratic Republic of Congo (DRC),
the company reported a working capital
deficit of $14,9-million and a
net $62 000 cash decrease in
the three months to June 30.
The company said that its management
was exploring all available options
to secure additional funding through
equity and debt financing, the sale
of selected business units,
the sale of noncore assets and
the establishing of strategic partnerships.
The services of all South African operational
employees had been terminated and only
a skeleton staff remained to attend
to administration and asset preservation.
Bulk sampling at Paardeberg East,
Silverstreams and De Kalk in South Africa and
at Tshikapa and the Northern Project in
the DRC, had been placed
The company said that DRC gold
explorer Banro Corporation,
a significant BRC Diamondcore shareholder,
had guaranteed a $6-million loan facility
to the company and would like
to be extricated from
that guarantee as soon as possible.
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Kigali - RWANDA
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