Botswana Diamonds Issues Placing Shares To Fund Exploration

Mining and Exploration
24/01/2019 16:22

UK-based and AIM and BSE listed exploration company Botswana Diamonds plans to raise more than $480,000 (£370,000) from investors, the company said Wednesday. They aim to raise the cash via a share issue, and that money would be used to help to fund its searches for diamonds in Botswana and South Africa. The investment also would be used to boost its working capital. Botswana Diamonds PLC is one of the most prolific diamond exploration and project development companies going, holding exploration licences in Botswana (Sunland Minerals and Maibwe projects) and South Africa (flagship project Thorny River, the Free State project and Mooikloof), and recently signed a MoU with Vast Resources for the exploitation of diamonds in the Marange Fields in Zimbabwe. The Minister of Mines has stated recently they will be allowed to explore for diamonds in Zimbabwe, which might take place in partnership with a local community trust.

The company will place 67.3 million shares at 0.55 pence each. Each share has one warrant attached with the right to subscribe for one new share at 0.6p each, lasting for two years. Botswana Diamonds shares were untraded Wednesday, last quoted at at 0.55p each. Some of the company’s directors have agreed to take part in the new funding round. James Finn, a director, has subscribed to buy 4.6 million shares, which will take his total stake in the business to just over 5 percent. James Campbell, managing director of Botswana Diamonds, has subscribed for just over 400,000 shares, bringing his holding in the company to almost 0.2%.