Almas Resources: Emerging Diamond Producer

Alrosa quits Botswana Exploration Project

November 19, 2018

Alrosa has sold its 50% stake in the Sunland Minerals exploration project in Botswana, according to its former joint-venture partner, wrote Rapaport in a press release. The miner underwent changes to its senior management in 2016 and 2017 that shifted them away from these types of projects.

Botswana Diamonds bought the Russian miner out for a “nominal sum” and now owns the asset outright, it said in a statement. The stake that Alrosa owned is about to be acquired by another large diamond producer and work could begin on identified targets in the first half of 2019 if the deal is finalised.

“For reasons unconnected with this [exploration site], new Alrosa management prioritised marketing over early-stage exploration,” said Botswana Diamonds chairman John Teeling. Alrosa stopped contributing funds, and will help its former partner find a replacement.

“The project in Botswana was [a] pilot for Alrosa, both in terms of the fact that this is a new country for us, and in terms of the management model,” an Alrosa spokesperson said. “After four years, we evaluated the results and decided to leave the project and concentrate on more familiar and priority activities. We thank Botswana Diamonds for their cooperation and wish the company success in the further implementation of this project.”

Source: Rapaport

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