18:00 Mon 16 Nov 2020
Botswana Diamonds - Acquisition of Sekaka Diamonds
16th
Botswana Diamonds PLC
("Botswana Diamonds" or the "Company")
Satisfaction of conditions precedent for acquisition of Sekaka Diamonds
Highlights:
· All pre-conditions for acquisition of Sekaka Diamonds now satisfied
· Completion expected on or around 20th
· Sekaka owns:
- The high grade KX36 kimberlite pipe
- Three Prospecting Licenses, one of which has been extended
- A fit-for-purpose kimberlite processing plant
- An extensive diamond exploration database
Botswana Diamonds ('BOD'), the AIM and BSE listed diamond explorer, is pleased to announce that all the Conditions Precedent for the acquisition of Sekaka Diamonds Pty Ltd ('Sekaka'), as previously announced on 20th
The transaction has been approved by Petra's lenders and noteholders as well as by the
Sekaka was Petra's exploration vehicle in
KX36 is a 3.5Ha kimberlite pipe, discovered by Sekaka, in the Kalahari. The kimberlite is situated approximately 70 km from
Sekaka also holds a recently constructed, 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 include data in respect of airborne (including the Falcon survey) and ground magnetics (including gravity and Electromagnetics), in addition to heavy mineral sampling. BOD believes that the information contained in the database will provide substantial support to its future kimberlite exploration activities in
The first deferred consideration cash payment of
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 17.9m tons at 35cpht is very rare. The potential far outweighs the challenge".
This release has been approved by James Campbell, Managing Director of Botswana Diamonds plc, a qualified geologist (Pr.Sci.Nat), a Member of the Geological Society of South Africa, a Fellow of the Southern African Institute of Mining and Metallurgy, a Fellow of the Institute of Materials, Metals and Mining (UK) and with over 35-years' experience in the diamond sector.
This announcement contains inside information for the purposes of Article 7 of Regulation (EU) 596/2014. The person who arranged for the release of this announcement on behalf of the Company was James Campbell, Director
A copy of this announcement is available on the Company's website, at www.botswanadiamonds.co.uk
ENDS
Enquiries:
Botswana Diamonds PLC James Campbell, Managing Director Jim Finn, Director
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+353 1 833 2833 +27 83 457 3724 +353 1 833 2833 |
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First Equity Limited - Joint Broker
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Glossary
Kimberlite: an igneous rock, typically formed under high pressure and temperature, which sometimes contains diamonds.
LDD: Large Diameter Drilling. A drilling technology typically used to evaluate the grade of kimberlites. In this case, 23" wide diameter rotary percussion holes were drilled.
SAMREC: South Africa Mineral Reporting Codes.
CPHT: Carats per Hundred Tons. A unit of measure which defines the grade of a kimberlite. A carat is 0.2 grams and the name is derived from the fruit of the carob seed, a seed commonly found in the Kimberley area of South Africa, one of the most prolific historical diamond producing areas.
BCOS: diamond grades should always be stated with an associated Bottom Cut-Off Size. Typically, the higher the BCOS, the lower the average grade and the higher the average diamond value. This is because diamonds follow a logarithmic distribution.
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