RAPAPORT… A South African company is claiming rights to portions of Botswana Diamonds’ Mooikloof project.
“Despite [Botswana Diamonds associate Vutomi] obtaining a
fully notarized and registered prospecting right on Mooikloof from the South
African Department of Mineral Resources [DMR], a local company claims they have
a mining permit over 5 hectares of property,” John Teeling, Botswana Diamonds’
CEO, said Tuesday.
Botswana Diamonds received a prospecting license for the
asset in June. However, the local group claims to have a mining permit, a
short-term license designed for small-scale mining. South African legislation
does not allow two different companies to own the rights to one mining asset.
The miner is dealing with the DMR in an attempt to resolve
the matter, it said.
Additionally, Vutomi has received prospecting rights over three
kimberlites at the Palmietgat asset in the Limpopo Province, near Petra
Diamonds’ Cullinan mine.
Botswana Diamonds Faces Asset Challenge
The Bottom Line
- Botswana Diamonds holds a fully notarized and registered prospecting right for the Mooikloof project obtained in June.
- A local South African company claims a conflicting five-hectare mining permit on the same Mooikloof property.
- Botswana Diamonds is working with the South African Department of Mineral Resources to resolve the overlapping rights issue.
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