The Projects |Mergers & Acquisition
Visionary Victor Resources, a company owned by Motswana businessman and mining tycoon Sesegolo Atang Makgekgenene has taken full control of Boteti‘s BK11 Diamond Mine.
The company bought the mine from British junior miner Firestone Diamonds.The BK11 kimberlite mine is located in the Orapa kimberlite field in Boteti region. BK11 is located approximately 10 kilometers west and 20 kilometers southeast of Debswana’s Letlhakane and Orapa mines, respectively, and is within 5 kilometers of Lucara’s Karowe mine.
Initial pit design work indicates that approximately 12 Mt of kimberlite can be extracted at an average grade of 8 carats per hundred tonnes containing circa 0.9 million carats. Phase 1 of the BK11 production plant commenced in August 2010 but was placed on care and maintenance in February 2012 as a result of the plant’s inability to successfully liberate diamonds.
Phase 2 which included secondary and tertiary crushing circuits and connection to the existing electrical power infrastructure remains to be implemented.
The total resource at the BK11 mine is 9.6-hectare kimberlite at the surface. Total Mineral Resource of over 29 million tonnes at a grade of 44 carats per hundred tonnes, containing circa 1.2 million carats.
In terms of In situ value the average price of the BK11 crater facies was estimated at US$137 per carat and the coarser West zone at US$157 per carat both at a 1mm bottom cut-off. The mine has been on care and maintenance since February 2012.
Makgekgenene is a multi-millionaire in dollar terms who through his various companies runs multiple projects in the mining business across Africa.
Makgekgene says after years of running mining business in other countries “it was now time to do something prolific for home country Botswana”
Visionary Victor Resources says BK11 mine is poised for magnificent diamond recoveries considering large diamonds unearthed in the nearby mine Karowe, 100 % owned by Canadian miner Lucara.
The company is targeting operation in the next 12 months, with a production run estimated for 10 years and massive prospects for expansion beyond 10 years as exploration work continues.
BK11 Diamond mine was initially supposed to be acquired by Canadian junior Miner Tango Mining, but the transaction failed.
On September 12, 2016 Tango Mining Limited announced that the Firestone Diamonds Limited Sale of Shares and Claims Agreement for the acquisition of the BK11 Diamond Mine, Botswana as announced on 9 July 2015, did not close by the 9 September 2016 as intended.
Although Firestone had agreed to extend the Revised Drop Dead Date, as announced on 29 August 2016, by when all conditions for the acquisition of BK11 must have been satisfied, namely consideration of US$8.0 million and repayment of the care and maintenance fees to a maximum of US$40,000 per month, the Company did not close the US$10 million Loan Financing announced on 29 August 2016 or the US$30 million loan commitment with Vanderbilt Commercial Lending, Inc., as announced on 24 March 2016 on or before the Revised Drop Dead Date.
On Thursday Government confirmed that it was aware of the take over subsequent resuscitation of the BK11 Diamond mine.
Deputy Permanent Secretary inthe Ministry of Mineral Resources, Green Technology and Energy Security Johannes Tsimako told Weekendpost that the Ministry is aware.
“We are aware of the takeover and we have approved transfer of the mining licence from previous holder, Monak Ventures Pty Ltd to Visionary Victor Resources, and we will be awaiting to see resuscitation of operations at BK 11 mine.” Tsimako said