Wednesday, May 25, 2022

BSE gives Botswana Diamonds listing bid thumbs up

Botswana Diamonds Plc, the London AIM listed diamond exploration outfit, is to list on the Botswana Stock Exchange (BSE) in the near future following the approval of its application on Monday, an impeccable source said.

“Botswana Diamonds has been approved,” head of the sponsoring brokerage firm, Capital Securities, Gregory Matsake, said on Monday afternoon.

“We are waiting for the confirmation of the listing date,” he said, adding that “initially we have suggested┬áJune 27”.

Botswana Diamonds used Firestone Diamonds’ argument┬áin its secondary listing application,┬ápointing out that its subsidiary has┬áalready complied with the Company’s Act of Botswana and there was no need for it to duplicate the exercise.

Lucara Diamond and African Energy Resources have filed their applications using the same argument. It is understood that their applications are at an advanced stage.

Botswana Diamonds Plc┬áis┬áa company registered under the England┬áand Wales laws listed on London’s Alternative Investment Market (AIM)┬áearly this year┬áand hoisted its Botswana┬áassets as its anchors to┬áinvestors.

The company, which┬áis headed by John Teeling as its executive chairman,┬áhas three┬áconcessions┬á in Orapa areaÔÇö where he┬ácoined a famous phrase calling it “the best diamond address in the world”.

In 2004, Teeling┬á┬á told investors at the Resource Sector conference that┬á“he was lucky and blessed”┬ábecause he had a concession in Botswana┬áwhich is “the┬ábest diamond address and the street name is Orapa area”. At that time┬áhe was referring to┬áAK6 concession area which he later sold it to┬áLucara┬áDiamonds┬áfollowing a compelling┬áoffer.

Botswana Diamonds has three assets; AK 8, AK 9 and BK 5 which are all along the Orapa area.
Both AK 8 and AK9┬áare┬áformer De Beers’ concessions┬áand they were┬áfarmed to African Diamonds in 2004 following their joint venture that was called Boteti Diamond Project.

“Since 2004 we have explored the two kimberlites┬áusing the most advanced technologies.
As for AK 8 we found that the┬ákimberlite was bigger than what was originally thought┬áalthough the grade was not that higher,” Teeling has said.

He continued: “I am very bullish about BK 5 and I think that can provide a standalone 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┬áat┬áBK 5 with a high potential.”

He said the exploration exercise for the┬áthree┬áassets will be┬áramped up this year and are expected to be the┬ácenter piece of the company’s operations across the┬áAfrican┬áregion.

Botswana Diamonds Plc has further  interest 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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