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BRC DiamondCore in TSX listing review
Allan Seccombe
Posted: Wed, 29 Apr 2009
[miningmx.com] -- EMBATTLED BRC DiamondCore has been given 30 days to meeting listing requirements on the Toronto bourse as part of a de-listing review.
In a brief note on the TSX on 28 April, shareholders were notified of the development.
“TSX is reviewing the common shares of the Company with respect to meeting the continued listing requirements,” the note said.
“The Company has been granted 30 days in which to regain compliance with these requirements, pursuant to the Remedial Review Process,” it said.
BRC financial director Brian Scallan said the notice was a result of the company's market capitalisation falling below a regulatory C$3m level.
"We are hoping to get that sorted out when we do our recapitalisation programme which is coming up pretty soon soand we'll be complying with that before the deadline, so it's not a major issue as far as we're
concerned," Scallan told Miningmx.
He declined to give more details of the funding arrangement, but said talks would be held with TSX authorities to extend the deadline.
There was no similar announcement on the JSE where BRC has a secondary listing. The issue pertains to the primary listing and BRC is not required to make an announcement to South African shareholders.
The share price on the TSX has fallen to C$0.08 from a year-high of C$18.10 around this time in 2008.
BRC’s current liabilities of C$13.9m for the year to end-December 2008 dwarf its current assets of C$882,216, of which the cash component is just shy of C$200,000. Those current liabilities are payable in calendar 2009.
BRC faces a liquidation hearing in South Africa in June. Applications were brought by two groups claiming they are owned nearly R10m in total and that there appeared little chance BRC was able to pay them.
BRC has placed all its exploration
work in South Africa on hold and put those projects into care and maintenance, cutting off a flow of cash it generated from sales of diamonds produced during bulk sampling work.
It has laid off 188 workers in South Africa citing the weakness in the diamond markets. Salaries for those workers dating back to February have not been paid.
Management has spoken of efforts to raise capital, including the sale of assets it deems non core. Scallan has told Miningmx these talks are progressing, but was unwilling to give any details.
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