Botswana Diamonds raising £0.55m to fund current exploration

Botswana Diamonds announced a company-arranged placing with existing and new investors to raise £0.55m on Monday, to fund current exploration activities in Botswana and South Africa.

The AIM-traded firm said the placing involved the issue of 55,000,000 new shares at a price of 1p each.

It said each placing share had one warrant attached with the right to subscribe for one new share at 2p each, for three years from 25 October, being the expected date of the warrant issue.

“The board has arranged the placing within the existing share authorities approved by shareholders at the last annual general meeting,” the board said in its statement.

Botswana Diamonds said the placing shares would rank pari passu with its existing ordinary shares.

Application would be made for the shares to be admitted to trading on AIM, which was expected on or around 5 November.

“The funds raised will be used to fund exploration activities during the current year in Botswana and South Africa, which remain ongoing, and to provide additional working capital for the company.”

At 0918 BST, shares in Botswana Diamonds were down 5.53% at 1.11p.