Bisan Limited (ASX:BSN) has advised that diamond drilling is poised to begin at the Pencil Hill graphite project in Botswana.
It had earlier this month proposed to acquire a 30% interest in Pencil Hill Pty Ltd, which will hold a 80% interest in the prospecting licence, for $2 million.
These funds will be used for exploration and other expenses.
Bisan also has the right to move to a 51% interest.
This is subject to the results of the program will entail drilling two diamond holes to a depth of 200 metres each to test for graphite.
Drilling is expected to take at least two weeks with a further three weeks to prepare and send the samples to an independent laboratory for analysis.
Bisan is also carrying out a placement to raise $549,463 via issue of 36,630,895 shares at $0.015, with one free attaching options for every share placed that are exercisable at $0.05 and expire on 31 December 2018.
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