AIM-listed Botswana Diamonds has undertaken a share placing with existing and new investors to raise £370 000 via the issue of just over 67.2 million new ordinary shares.
Botswana – 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.
Each placing share has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from 23 January 2019.
Botswana Diamonds is advancing towards diamond production at the Thorny River project in South Africa having concluded a mining contract with Palaeo Minerals covering both bulk sampling activities and potentially future full-scale mining services at Thorny River.
Following the release of a technical and economic evaluation report on Thorny River in June 2018, Botswana Diamonds and its partner Vutomi have been considering a number of options to advance the property, concluding with the company signing the contract with Palaeo – who is an experienced mining contractor with several mining contracts in South Africa and Zimbabwe.
The contract will enable Botswana Diamonds to self-fund the Thorny River project from bulk sampling through to mine development, assuming positive results.
“We are confident that Thorny River could be the first diamond producing project for Botswana Diamonds. A royalty bulk sampling/mining model means that we have no capital expenditure apart from a limited in-fill drilling programme in early-2019,” says Botswana Diamonds chairman John Teeling.