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Botswana Diamonds PLC - Dublin-based diamond exploration company with licenses in Botswana and South Africa - Exercises pre-emptive right to acquire all outstanding third party interests in Vutomi Mining Pty Ltd and Razorbill Properties 12 Pty Ltd, collectively known as Vutomi, which holds the mineral rights to the Thorny River diamond project.
The interests will be acquired through the issue of 57.0 million shares, which based on Tuesday's closing price of 1.10p is valued at GBP627,000.
Once the acquisition is completed, Botswana Diamonds will sell 26% of Vutomi for USD316,333 to its South Africa Empowerment partner, Baroville Trade & Investments 02 Pty Ltd, to comply with SA requirements.
The acquisition is conditional on regulatory and competition authority approvals in South Africa, and is expected to be completed in the first half of 2022.
"Since working on Thorny River thirty years ago, we recognised potential for discoveries on a kimberlite system spanning 20km. Recent drilling vindicated this view and indicates potential for additional nearby discoveries. Following a third party offer for Vutomi, Botswana Diamonds has exercised its pre-emption rights. This transaction streamlines exploration activities and involves the local community as supportive stakeholders in this development," said Managing Director James Campbell.
Current stock price: 1.15 pence, up 4.3%
Year-to-date change: up 35%
By Dayo Laniyan; dayolaniyan@alliancenews.com
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