BCL Group, currently going through a marathon liquidation process, is set to sell its stake in Maibwe Project – a joint venture between Botswana Diamonds (BOD) and the fallen copper mining company.
According to the latest information provided by BOD, the project, which BOD chairman John Teeling describes as ‘exciting’ has been mired in the liquidation of the main shareholder being BCL.
Now, it has been revealed that a prospectus has been produced by BCL for the purpose of selling its stake in the joint venture.
In Maibwe joint venture, BCL owns a 51 percent stake, 20 percent by local interests and the rest by Siseko – a South African company 51 percent controlled by Botswana Diamonds.
However, Teeling has expressed excitement that progress has been made regarding the disposal of BCL stake in the joint venture.
Before the liquidation of BCL in 2016, which was a key partner in the project, drilling had taken place in the Gope region of the Kalahari on four of Maibwe licenses, which reportedly produced ‘very good results’.
It is not yet clear who will buy the BCL stake in Maibwe diamonds, but BOD Managing Director James Campbell told the Botswana Resources Sector Conference in June this year that they have offered to buy BCL stake in the project.
In a contradicting statement made by Teeling on Monday this week saying a prospectus has been prepared by BCL to sell its stake in Maibwe, BCL liquidator says the statement is misleading, as he has not produced any prospectus, but still preparing it.
Speaking to Voice Money in an interview, BCL liquidator, Nigel Warren-Dixon said all the parties involved in Maibwe joint venture are still piecing information together regarding the project so as to come up with a solid prospectus that will be used to sell BCL shares in Maibwe.
Asked if BOD is still interested in acquiring the stake, Dixon-Warren said obviously as a shareholder they will still be interested but are yet to indicate so.
BOD has on Monday announced its for the year ended 30 June, 2018 which shows it made a loss 557 657 British Pounds.
“I have looked at their financials and I don’t think at the moment there are in a strong position financially to be looking to buy the BCL stake,” explained the BCL liquidator.