[miningmx.com] — BRC DiamondCore, the African focused diamond explorer active in the Democratic Republic of the Congo (DRC), on Tuesday reported the narrowing of its March quarter loss.
The company reported a net loss of C$286 715 for the three months to end March 2010, compared to a net loss of C$1.48m for the three months to end
The net asset value of the company was C$5.2m as at end March 2010,
against C$5.3m as at end December 2009.
BRC DiamondCore’s accumulated deficit as at end March 2010 was C$118.1m, as opposed to C$117.8m as at end December 2009.
The company had a working capital deficit of C$732 101 as at end March 2010 and had a net decrease in cash of C$462 291 during the three months to the end of the quarter.
BRC DiamondCore has no operating revenues and is wholly reliant upon external
financing to fund its activities.
In 2009, the company raised funds by selling participation in its projects or areas where it held the exploration rights.
This was the case with Rio Tinto who paid the company $380 000 to enable Rio Tinto to obtain a 75% interest in the iron ore project.
In January 2010, the company announced that it had entered into a joint venture agreement with Rio Tinto Minerals Development for the exploration for iron ore in areas within the Province Orientale, in the DRC.
Under the agreement, BRC DiamondCore owns 25% of the share capital of the
joint venture company that owns the DRC company that holds the permits.
Rio Tinto owns 75% of the share capital of the joint venture company.
Upon finalization of the transaction, Rio Tinto made further payments amounting to US$150 000.
BRC DiamondCore’s activities are solely focused on the DRC after Diamond Core
Resources, which had been the holding company of the company’s former projects in South Africa, was subject to a liquidation order in July last year.
“Given the company’s financial position and available resources, the company
currently expects a need to access equity markets for financing over the next twelve months,” the company said in its results announcement.