Aim-listed Botswana Diamonds has arranged a placing with existing and new investors to raise £300 000 through the issue of 50-million new ordinary shares.
The funds raised will be used to fund ongoing exploration activities in Botswana and South Africa this year, as well as for additional working capital.
The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.
In Botswana, the funds will be focussed on commercialising the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds.
This will include finalising a work programme to upgrade the grades and diamond value of the kimberlite pipe, as well as investigating innovative mining options.
Drilling is planned for the adjacent Sunland Minerals property and, following further assessment of the comprehensive Sekaka database, more drilling targets are likely to be identified.
"This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground. We have a number of active projects.
"The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat,” says executive chairperson John Teeling.