Botswana diamonds raising £0.3m to fund exploration work

The AIM-traded firm said the funds would be raised via the issue of 50,000,000 new shares at a price of 0.6p each.

It also said each placing share would have one warrant attached, with the right to subscribe for one new share at 0.6p each for two years from 7 September.

The funds raised would be used to fund ongoing exploration activities during the current year in Botswana and South Africa, ther board said, and to provide additional working capital.

Botswana Diamonds said it was currently drilling kimberlite M8 on the Marsfontein licence in South Africa, and had generated further kimberlite targets which would be drilled on the adjacent Thorny River concession.

In Botswana, the funds would be focussed on commercialising the KX36 project, following the recent acquisition of Sekaka Diamonds from Petra Diamonds.

That would include finalising a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.

Drilling was planned for the adjacent Sunland Minerals property, and following further assessment of the comprehensive Sekaka database, more drilling targets were likely, the directors explained.

“We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” said chairman John Teeling.

“We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential.

“While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”

At 1008 BST, shares in Botswana Diamonds were down 1.11% at 0.67p.