TIDMBOD
RNS Number : 3472F
Botswana Diamonds PLC
16 November 2020
16(th) November 2020
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 20(th) November 2020
-- 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 20(th) July 2020, have now been satisfied.
. Sekaka's Prospecting License which holds the KX36 high-grade
kimberlite pipe has also been extended for a further two years to
30(th) September 2022.
The transaction has been approved by Petra's lenders and
noteholders as well as by the Botswana Minister of Mineral
Resources, Green Technology and Energy Security.
Sekaka was Petra's exploration vehicle in Botswana and holds
three Prospecting Licenses in the Central Kalahari Game Reserve
("Kalahari") in Botswana, PL169/2019, PL058/2007 and PL224/2007,
which includes the high grade KX36 kimberlite pipe. The acquisition
also includes an extensive database, built up over 15 years of
exploration.
KX36 is a 3.5Ha kimberlite pipe, discovered by Sekaka, in the
Kalahari. The kimberlite is situated approximately 70 km from Gem
Diamonds' Ghaghoo Mine, and 260 km north-west of Botswana's capital
Gaborone. Sekaka has undertaken extensive exploration work on KX36,
including extensive core and Large Diameter Drilling ('LDD'). There
is a historic SAMREC compliant Indicated Resource of 17.9 million
tonnes at 35 cpht, and an Inferred Resource of 6.7 million tonnes
at 36 cpht, estimated for the pipe by Z-Star in 2016. As Sekaka
owns 100% of KX36, gross and net resources are the same. Sekaka is
the operator of KX36. BOD has not independently verified the
historic resource estimate. Modelling these grade estimates
suggests overall grades of between 57 cpht and 76 cpht. The
estimated diamond value from the LDD is $65/ct, with an upside
range of between $97/ct and $107/ct, all assuming a +1.15mm Bottom
Cut-Off ('BCOS') or +3 DTC diamond sieve.
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 Botswana.
The first deferred consideration cash payment of US$150,000 will
be payable on or about 20(th) November 2021, being the first
anniversary of completion of the acquisition.
John Teeling, chairman, commented. "We are grateful to the
Botswana Authorities for the quick approval of our acquisition of
the KX36 discovery, the extension of the licence and the award of
two surrounding licences.
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
John Teeling, Chairman +353 1 833 2833
James Campbell, Managing Director +27 83 457 3724
Jim Finn, Director +353 1 833 2833
Beaumont Cornish - Nominated Adviser
Michael Cornish
Roland Cornish +44 (0) 020 7628 3396
Beaumont Cornish Limited - Broker
Roland Cornish
Felicity Geidt +44 (0) 207 628 3396
First Equity Limited - Joint Broker
Jason Robertson +44 (0) 207 374 2212
Blytheweigh - PR +44 (0) 207 138 3206
Megan Ray +44 (0) 207 138 3553
Rachael Brooks +44 (0) 207 138 3206
Said Izagaren +44 (0) 207 138 3206
Naomi Holmes +44 (0) 207 138 3206
Teneo
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
Ross Murphy +353 (0) 1 661 4055
www.botswanadiamonds.co.uk
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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END
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