Dual-listed Botswana Diamonds has announced that all conditions precedent for the acquisition of Sekaka Diamonds have been satisfied.
The transaction, first announced in July, has been approved by Petra’s lenders and noteholders, as well as by the Botswana Minister of Mineral Resources, Green Technology and Energy Security.
Sekaka was Petra’s exploration vehicle in Botswana and holds three prospecting licences in the Central Kalahari Game Reserve – PL169/2019, PL058/2007 and PL224/2007 – which include the high-grade KX36 kimberlite pipe.
KX36 is a 3.5 ha kimberlite pipe, discovered by Sekaka, in the Kalahari. Sekaka has secured an extension of the prospecting licence over this high-grade kimberlite pipe for two years to September 30, 2022.
The kimberlite is situated about 70 km from Gem Diamonds’ Ghaghoo mine, and 260 km north-west of Botswana’s capital Gaborone.
Sekaka has undertaken extensive exploration work on KX36, including extensive core and large diameter drilling (LDD).
There is a historic South African Mineral Reporting Codes-compliant indicated resource of 17.9-million tonnes at 35 carats per hundred tonnes (cpht), and an inferred resource of 6.7-million tonnes at 36 cpht, estimated for the pipe by Z-Star in 2016.
Sekaka also holds a recently built, fit-for-purpose bulk sampling plant on site. The sampling plant includes crushing, scrubbing, dense media separation circuits and X-ray recovery modules within a secured area.
Sekaka’s extensive diamond exploration database contains the results of work undertaken since 2005. The data includes data in respect of airborne (including the Falcon survey) and ground magnetics (including gravity and electromagnetics), in addition to heavy mineral sampling.
The acquisition also includes an extensive database, built up over 15 years of exploration.
Botswana Diamonds believes the information contained in the database will provide substantial support to its future kimberlite exploration activities in Botswana.
The first deferred consideration cash payment of $150 000 will be payable on or about November 20, 2021, being the first anniversary of completion of the acquisition.
“We are grateful to the Botswana authorities for the quick approval of our acquisition of the KX36 discovery, the extension of the licence and the award of two surrounding licences.
“We are convinced that a review and reworking of the existing database on KX36 will identify areas where the grade and volume can be improved. We have significant work done on this and are ready to go when exploration restrictions are lifted.
“Kimberlite pipes like KX36 are rarely if ever found on their own. It is of major importance that we got two adjacent licences where we are now very hopeful to find other kimberlites. The Kalahari Desert is a tough environment but finding something as rare as KX36 containing an estimated indicated resource of 17.9-million tonnes at 35 cpht is very rare. The potential far outweighs the challenge,” comments chairperson John Teeling.