10 February 2012

Firestone Diamonds

HOLD

21/12/2009 Robert Tyerman

Firestone Diamonds has agreed a joint venture with Melbourne-based Tawana Resources over projects in Botswana’s Orapa field.

AIM-quoted Firestone, which lost £11m last year but has high hopes for major imminent developments at another Botswana gem project, BK11, can earn 70% of Tawana’s kimberlite diamond projects in Botswana by carrying the costs for the first stage in bulk sampling of recovered stones. If Tawana later decides not to fund its own 30% of future project costs, Firestone can earn another 15% for itself if it carries costs to mine development stage.

Highlighted by Growth Company Investor at a depressed 16.5p in February, Firestone’s shares have rallied to 35.25p, a far cry from their 200p all-time peak, but offering the prospect of further gains.

Tags: AIM, Commodities, Deals & contracts

Sector: Mining

Companies: Firestone Diamonds

Market cap: £34.4m

PE Forecast: n/a

Share price: 35.25p

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