Saturday, July 2, 2022

Botswana Diamonds seeks dual listing on BSE

Botswana Diamonds Plc issued warning bells about its impending listing on the Botswana Stock Exchange (BSE) on Thursday following its successful maiden floating on the London Stock Exchange mid this week.

“Our intention is to list on the Botswana Stock Exchange this month. Our report has passed the due diligence in London.

“The London regulations are more rigorous than here,” executive chairman of Botswana Diamonds, John Teeling, told investors in Gaborone.

Botswana Diamonds Plc, a company registered under the England and Wales laws listed on London’s Alternative Investment Market (AIM), on Wednesday hoisted its Botswana assets as its anchors to investors.

Teeling’s company has three concessions in Orapa areaÔÇö where he coined a famous phrase calling it “the best diamond address in the world”.

In 2004, Teeling told investors at the Resource Sector conference that he was “lucky and blessed” because he had a concession in Botswana, which is the best diamond address and the street name is Orapa area. At that time he was referring to AK6 concession area, which he later sold to Lucara Diamonds following a compelling offer.

Under agreed terms, former African Diamonds shareholders are to get 0.8 share for every share at the Toronto listed Lucara and further one share for every five shares at the London listed Stellar Diamonds Plc. Further, they will get one share for every share at Botswana Diamonds.

Botswana Diamonds has three assets: AK 8, AK 9 and BK 5, which are all along the Orapa area.
“We will be focusing on the sampling of AK 8 and AK 9 starting from this January and that should take us about six months,” he said.

The focus of the sampling will try to determine the value of the mine as well as the commercial level of the deposits. The outcome of the sampling should be able to inform the company on the future planning for the mine, which might include building or renting small processing at the site or shipping the ore to a central processing plant.

Both AK 8 and AK9 are former De Beers concessions and they were farmed to African Diamonds in 2004, following their joint venture that was called Boteti Diamond Project.

“Since 2004 we have explored the two kimberlites using the most advanced technologies. As for AK 8 we found that the kimberlite was bigger than what was originally thought although the grade was not that higher,” he has said.

“I am very bullish about BK 5 and I think that can provide a stand-alone mine, which will mean that we will have to build a plant or rent one. What we are looking at is small and low CAPEX mine at BK 5 with a high potential,” Teeling added.

He said the exploration exercise for the three assets will be ramped up this year and are expected to be the center piece of the company’s operations across the African region.
Botswana Diamonds Plc has further interests in Cameroon, Central Africa Republic, Democratic Republic of Congo and Zimbabwe.

In Zimbabwe negotiations are focused on concession areas at Marange, Murowa and possibly in the northern part of the economically and politically challenged country.

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