Firestone Diamonds, the London AIM listed diamond exploration and mining company, said Monday that it is putting┬áfinishing touches to plans to get a secondary listing on the Botswana Stock Exchange (BSE), in a move that is┬áexpected to help widen opportunities for local investors.
The diamond exploration company, with a specific emphasis on Botswana and to a certain extent┬áSouth Africa, is the second big company to announce plans to list on BSE since the beginning of the year giving indications that the local economy might be emerging out of the worst economic downturn since┬áWorld War II.
Wilderness Safaris warned the regional markets about its intention to seek primary listing on BSE three weeks ago┬áwith secondary listing on JSE African Markets counter.
“This will add to a number of listable entities on BSE. We can foresee them having any problems with the local requirement because they are already listed on the London Stock Exchange,” head of┬áCapital Securities and nominated sponsoring broker, Gregory Matsake, said Monday.
He added: “This is an opportunity for local investors to partake in the exploitation of their natural resources.”
The┬á company is currently eyeing to start production at BK 11ÔÇösome┬á 20 kilometres south-east of Orapa mine and five kilometers north east of┬á African Diamonds’┬á AK 6 proposed mineÔÇö during the second quarter of 2010.
The move is expected to coincide with its listing,┬áwhich will also bolster the presence of the company in the local scene.
Firestone Diamonds Plc┬áis also involved in diamond exploration near Jwaneng mine and Tsabong areas where its finds have been┬ádescribed as “encouraging.”
“Firestone has made a substantial investment in its Botswana operations, which are now the primary focus for the Company.┬á With BK11 due to commence production shortly, and more than 100 kimberlites in our licence areas in the Orapa, Jwaneng and Tsabong regions, we believe that we have a successful future ahead of us in Botswana and look forward to growing our shareholder base in Botswana,” Chief Executive Officer of Firestone Diamonds Plc, Philip Kenny, said.
┬áFurther, the company indicated on Monday that it has applied for and been granted Local Asset Status by the Non-Bank Financial Institutions Regulatory Authority of Botswana.┬áThe ability of Botswana-based institutional investors to invest in Botswana Stock Exchange listed companies is significantly improved by the granting of Local Asset Status.
Last year, Firestone Diamonds said it was embolden by the results from BK11, especially with the┬áresource from┬áKW which has a “high confidence grade” and diamond and diamond value estimates to be made. This is based on inferred resource of 12 million tones defined containing approximately 830,000 carats┬áfor the area.
The west side of BK11 was valued between 9-15 carats, whose value was estimated at US $ 175 per carat out of┬á7 million┬átonnes.
“The quality of diamonds recovered from sampling was very good, comprising┬ámostly of┬áclear white gemstones and very little boart. The parcel contained four stones of over one carat in┬ásize which is very encouraging in relation to diamond value, with the biggest stone being recovered being 1.93 carats and valued at US $ 910 per carat,” the┬ácompany said in a statement.
By Monday, Matsake said that they are awaiting for documents┬áfrom┬áFirestone Diamonds Plc so that they can formally launch an application with BSE for secondary listing.