HomeDiamonds & GemstonesAfrican Diamonds to raise £9.6 million

African Diamonds to raise £9.6 million

AK6 sampling
plant in Botswana
London, England — MININGREVIEW.COM — 08 April 2010 – AIM-listed Botswana diamond company African Diamonds has undertaken a conditional placing of 24.146 million ordinary shares at a price of 40 pence per share, in conjunction with FinnCap, to raise approximately £9.6 million (R108 million) before expenses.

A company statement released here confirmed that the proceeds of the placing would be used to increase African Diamonds’ share in AK6 to 40%; to fund the company’s portion of the early works budget on AK6; and for general working capital and exploration.

It added that the early works programme included orders for long-lead time capital equipment and mine site development. Exploration would be focused on African Diamonds’ 100% owned AK8, AK9 and BK5 projects, all located in the vicinity of AK6 in Botswana.

The statement said the company’s directors and families would invest, in aggregate, £1 million (R11.3 million) in the placing. Following the placing, there would be 100.357 million ordinary shares in issue. The placing shares would be placed under the existing share authorities and would rank pari passu with the existing issued ordinary share capital, the company added.

Chairperson John Teeling commented: “I am delighted by the support African Diamonds has received from a significant number of institutional investors. As the final studies on AK6 are nearing completion, the fundamentals of the mine continue to improve. The mine is expected to come on stream in late 2011,” Teeling added.