Botswana Diamonds said on Friday it has raised cash from investors that will allow the company to fund exploration endevours across the continent as it continues to scour for minerals to build asset base.
In an update, the AIM listed company revealed it has conditionally raised ┬ú1.51 million (about P17.5 million), which is net of expenses through a placing and direct subscriptions with the company of, in aggregate, 37,750,000 new ordinary shares of ┬ú0.01 each at a price of 4 pence per share.
The company added that the fundraising price represents a discount of 11 percent to the closing price of 4.5 pence per Ordinary Share on 16 February 2012, being the last trading day before this announcement.
“The strong support we have received for the placing is a further vote of confidence in Botswana Diamonds’ strategy,” John Teeling, Chairman of Botswana Diamonds said.
Teeling said the proceeds of the fundraising will enable the company to continue its exploration programme in conjunction with its partner in Botswana where first results will come through in Q3, in Cameroon where first results are due mid-year and in Zimbabwe where sampling is on-going.
Botswana Diamonds pointed out that the majority of the net proceeds of the Fundraising will be deployed on the Company’s exploration projects in Botswana, Cameroon and Zimbabwe.
The company said work is on-going with the Company’s partner in Botswana with first results due in Q3 of this year.
It added that the directors are hopeful that the analysis will identify large anomalies in the hard-to-explore north east of the country.
“A second stage exploration programme is about to begin in Cameroon. The work will involve bulk sampling on previously identified palaeoplacer conglomerates to confirm whether they contain diamonds. A follow-up larger bulk sample to identify diamond grade and quality is likely to commence toward year end,” said Botswana Diamonds.
“A small bulk sampling of a two hectare kimberlite is underway in Zimbabwe. This kimberlite, which was previously identified by Rio Tinto, is known to contain diamonds. When and if mining licences are obtained on Chimanimani and Marange in Zimbabwe, Botswana Diamonds will immediately mobilise,” it added.
Application will be made for the new shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 22 February 2012.
The Fundraising is being undertaken using the authority granted to the Directors at the time of the Company’s admission to trading on AIM.