The London-based junior diamond miner Firestone Diamonds has put its suspended BK11 diamond mine in northern Botswana on the market for possible full or partial disposal, with a view to raise funds to focus on its project in Lesotho.

The planned disposal will also include Firestone's exploration leases in Orapa, Tsbong and Kokong in Botswana.

"The offers are still subject to negotiation, which may result in the final sales price being higher or lower than the carrying value of the assets," said the company in a financial results report.

Firestone has started commercial production at BK11 mine in July 2010, and projected to produce from the mine about 1 million carats of diamonds over its 10-year life.

However, the British company announced in February 2012 that it had suspended operations in its BK11 mine and placed it on temporary care and maintenance because of "operational challenges and the weakness in the diamond market."

The company said the project had encountered technical challenges regarding the liberation of diamonds from the secondary crushing circuit of the plant and that it would conduct a strategic review.

Firestone's full year financials indicated that 400,000 Pounds was spent on the care and maintenance program, 700,000 pounds on working capital payments and another 1.3 million pounds on repayment of a BK11 debt.

Local observers say it is not surprising that Firestone puts BK11 mine on sale because of the bigger potential for profitability at the company's Liqhobong mine in Lesotho, the unsustainability of care and maintenance and the need to focus on the company's cash flow.

Firestone's executives said proceeds from the whole or partial disposal of BK11 and Botswana exploration licences would shore up fundraising activities for Liqhobong and the group's working capital.

Botswana is the world's largest diamond producer by value. Currently there are two diamond miners of diamonds in the country: Debswana, one of the biggest diamond miners in the world and the junior Canadian diamond company Lucara Diamond Corp.

Recent years have seen small diamond mines in Botswana being force to close because of weak diamond prices and technical challenges. London based Mantle Diamonds suspend its Lerala mine in August 2012, just a few months after its open. The Damtshaa mine of Debswana was also closed for about two years before it re- opened in 2011.

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