JOHANNESBURG (miningweekly.com) – Aim-listed Botswana Diamonds on Friday announced that it had raised cash proceeds of £540 000 through the issue of 21.6-million new ordinary shares of 1p each, along with two warrants per new share, which, together with the ordinary shares, formed a unit that was priced at 2.5p.
In addition, the company had also settled a further £200 000 of existing liabilities with the directors of the company through the issue of further units also priced at 2.5p each.
In total, the company had issued 29.6-million new shares and 59.2-million warrants. The warrants each offered the right to subscribe for one new ordinary share at a subscription price of 2.5p a share for a period of six months from December 18, which was the expected date of the warrants issue.
Botswana Diamonds stated that the new shares would rank on equal footing with the company’s existing ordinary shares and were expected to be admitted to trading on the Aim on December 18.
The funds raised would be used to fund the company’s exploration projects in Botswana, as well as working capital needs.
"The current financing environment facing exploration ventures on [the] Aim is particularly difficult, so we are pleased that a small number of existing shareholders and new investors have supported this fundraising. We will begin exploring the first target of our joint venture (JV) with Alrosa, PL117, in January. This licence, about 10 km from the Karowe diamond mine, is a high potential target for the JV," Botswana Diamonds chairperson John Teeling said.