ASX listed, Botswana Metals Ltd said Friday that it will turn its focus to its Dibete and Airstrip discoveries after its joint venture partner with BCL Limited proved futile.
BCL was last week placed in provisional liquidation by the government following fears that some its creditors could approach the high court for its liquidation.
Government appointed liquidator – Nigel Dixon-Warren is such expected to compile and present a report in February 2017 about whether BCL Limited could continue operating or be shut down completely.
Addressing a press conference this week, Chairperson of BCL Board Dr Khaulani Fichani explained that the whole process of provisional liquidation would take up to four months.
Dr Fichani further explained the decision to enter provisional liquidation was made because government could not afford to finance BCL losses anymore.
He said BCL had operated at a loss for a while due to plummeting metal prices and high operation costs at the Selebi Phikwe mine.
“We have decided to go into compulsory liquidation by the shareholder with the hope that the liquidator will assess option available for BCL Group. In terms of how long the whole process will take, it will be four months,” Dr Fichani said.
However Botswana Metals said Friday that although at this stage no formal advice has been received from BCL, “Under the farm-in joint venture agreement if a party becomes insolvent, including being placed in provision liquidation, the solvent party may terminate the agreement”
On 27 June 2016 the company announced that, subject to formal documentation, BCL could earn a 40% interest in PL 110/94, PL 111/94 and PL 54/98 (“the three PLs”).
By close of markets on Friday, Botswana Metals indicated that no formal advice has been received from BCL regarding the earning of an interest in the three PLs.
In late July, Botswana Metal stated in one of its market update statements that BCL has already earned an initial 40 percent in the three prospecting licenses of the joint venture, and by electing to fund the BFS it will take management rights over the project development and earn a 70 percent interest in the licenses after completing the BFS. The BFS was to determine the optimum route to mining.
