Botswana Diamond confident Thorny River will be first operating mine

UK-listed Botswana Diamonds said it had high hopes its Thorny River prospect in South Africa will become its first operating mine following conclusion of a mining contract which sees the company hand over control to the contractor.

In return, Botswana Diamonds – through its partner Vutomi – will receive a 12% net royalty revenue and a further 8% to cover state mineral royalties, sales and security expenses. The balance of the project will be owned by operator, Palaeo Minerals. Indicated net royalties could be between $2m and $7m annually.

A processing target of up to 30,000 tons of kimberlite per month has been planned and diamonds will be recovered using a processing facility at a nearby diamond mine. Drilling on the project is set to begin in 2019.

“We are confident that Thorny River could be the first diamond producing project for Botswana Diamonds,” said John Teeling, chairman of Botswana Diamonds. “We anticipate the award of the necessary regulatory approvals in anticipation of revenue being generated during the course of 2019,” he said.

3 COMMENTS

  1. Is this a case of History Repeating itself?

    One reads this article with great interest, and one asks the question whether the Management and Board of Botswana Diamonds have conducted a comprehensive due diligence into Palaeo Minerals which includes but not limited to it’s ownership/management.

    According to CIPC the Director of Palaeo Minerals is one other than Glenn Norton, and in my opinion he was released from Rockwell Diamonds for signing a Contract with a Supplier, without having the necessary “authorisation” to sign such contract. Why did Norton sign such a contract? Did he benefit from the contract? Did Norton have authority by James Campbell (the then CEO of Rockwell) to sign the Contract.

    It was THIS supplier that approached the Courts to liquidate Rockwell Diamonds. Current Rockwell is in provisional liquidation.

    What is the relationship between Campbell and Norton?

    According to my sources–Vutomi was introduced to Campbell whilst he was CEO of Rockwell Diamonds and now Vutomi are in business with Botswana Diamonds.

    Makes you think doesn’t it!

    Many questions need to be answered

    Is Botswana Diamonds becoming Rockwell’s Old Boys Club?

    I trust that the shareholders of Botswana Diamonds will be fully informed by the Board of Botswana Diamonds of all Corporate Activities so that they may form their own opinion.

  2. Rockwell Diamonds Inc of whom James Campbell was the the CEO and is now the Botswana Diamonds MD issued a news statement on March 24, 2017 ,purporting that a senior employee of Rockwell had entered into an agreement on behalf of Rockwell and C Rock Mining that was falsified , signed and authorized by a “senior employee” of Rockwell.The agreement referred to was signed whilst James Campbell and the “senior employee” were still employed by Rockwell Diamonds.The “senior employee is Mr Glen Norton who is now the director of Palaeo Mining.The press statement goes on to say that “At the time of signing such disputed agreement in late 2015 such employee made an undisclosed R 600 000 investment in C Rock Mining while still an employee of Rockwell which was only uncovered by forensic audit.” Both Campbell and Norton were employed by Rockwell at the time that the spurious agreement was signed during 2015.
    C Rock Mining filed for and was awarded an interim Liquidation order against Rockwell and two of its subsidiaries on March 23, 2017, after Norton had joined C Rock Mining.Campbell had by then joined the board of Botswana Diamonds. They are now doing business as usual .Considering the serious allegations leveled against Norton by Rockwell and of which Campbell surely was aware of at the time now raises very serious questions about the supposedly arms length transaction announced between Botswana Diamonds and Palaeo Mining. It would be prudent for the board of Botswana Diamonds to verify the bona fides of their new contracting partners to ensure transparency in the interest of their shareholders.

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