Botswana Diamonds (BOD) said it has raised £500,000 (before expenses) via the placing of 33,333,333 new ordinary shares with new and existing investors at a price of 1.5p per Placing Share. The Placing Shares represent approximately 9.9% of the company’s issued share capital as enlarged by the Placing.
According to BOD, the net proceeds of the placing will fund ongoing diamond exploration in Botswana which is being operated by Alrosa, the Company’s 50:50 joint venture partner, and will also provide the Company with additional working capital.
“The Placing shares will rank pari passu with the Company’s existing ordinary shares of 0.25p each. Application will be made for the Placing Shares to be admitted to trading on AIM (“Admission”) and it is expected that such Admission will become effective on or around 20th May 2016,” the company said.
BOD added that following the Admission of the Placing Shares, there will be a total of 336,975,831 ordinary share of 0.25p each in issue with each share carrying the right of one vote. The above figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or change to their interest in, the Company under the FCA’s Disclosure and Transparency Rules.
“We have a very active ongoing drilling, sampling and geophysics programme on our ground in Botswana. We expect this work to continue through the rest of 2016,” BOD Chairman John Teeling said “This placing ensures we are fully funded.”