London-listed Botswana Diamonds (BOD) has finally announced the conclusion of acquisition of the outstanding third-party shares in Vutomi Mining and Razorbill Properties 12.
The acquisition of Vutomi had been dependent on customary regulatory and competition authority approvals in South Africa.
BOD on September 29, 2021, exercised its pre-emptive right to acquire the outstanding third-party shares in Vutomi, which holds the mineral rights to the Thorny River project and other exploration assets.
The company can now set forth to get a mining permit for Thorny River, with initial applications having already been submitted. The project is an advanced-stage kimberlite exploration property.
The consideration for Vutomi comprises 57-million new ordinary shares of £0.0025 apiece in BOD. There are no lock-in arrangements, but the consideration shares will be issued in two equal tranches, three months apart.
Accordingly, about 28-million shares have been issued on September 28 to the vendors of Vutomi, which will start trading alongside the company’s ordinary shares on or about October 4.
One of the vendors is BOD MD James Campbell, who will receive 9.4-million shares as part of the acquisition. He had some ownership in Vutomi and Razorbill.
BOD intends to sell 26% of Vutomi for a deferred consideration of $316 333 to its South African empowerment partner Baroville Trade and Investments, which will be funded by a loan from BOD.
BOD will then own 74% of Vutomi.