JOHANNESBURG (miningweekly.com) – The International Finance Corporation (IFC) on Friday made a C$5-million equity investment in TSX-listed Tsodilo Resources, in a deal that would assist in diversifying Botswana’s mining industry.

The funds would be used to advance exploration at the Canada-based company’s Ngamiland diamond and base-metals project, in north-west Botswana.

Tsodilo noted that the IFC could potentially provide additional funding during the exploration, feasibility study and development stages.

Further, the World Bank subsidiary would also cooperate with the mining company to ensure that exploration and the mine’s development are undertaken in an environmentally and socially sustainable manner.

“We look forward to drawing on IFC’s guidance and expertise to help ensure that the progress at Ngamiland follows globally recognised best practices for the mineral exploration industry, the environment, and for working with local communities,” Tsodilo CEO and chairperson James Bruchs said in a statement.

IFC global head of mining William Bulmer added that its investment was in line with the bank’s strategy of supporting early-stage exploration companies with financing and advice.

The IFC was now the second-largest shareholder in Tsodilo, holding a 12% stake in the company.

Diamond mining contributes more than 50% of Botswana’s tax revenues, prompting the government to intensify its efforts to diversify the economy, including the promotion of mining for other mineral resources.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.