Botswana Diamonds Faces Asset Challenge

RAPAPORT... A South African company is claiming rights to portions of Botswana Diamonds' Mooikloof project. "Despite [Botswana Diamonds associate Vutomi] obtaining afully notarized and registered prospecting right on Mooikloof from the SouthAfrican Department of Mineral Resources [DMR], a local company claims they havea mining permit over 5 hectares of property," John Teeling, Botswana Diamonds'CEO, said Tuesday. Botswana Diamonds received a prospecting license for theasset in June. However, the local group claims to have a mining permit, ashort-term license designed for small-scale mining. South African legislationdoes not allow two different companies to own the rights to one mining asset. The miner is dealing with the DMR in an attempt to resolvethe matter, it said. Additionally, Vutomi has received prospecting rights over threekimberlites at the Palmietgat asset in the Limpopo Province, near PetraDiamonds' Cullinan mine.