Botswana Diamonds

Unaudited Interim Statement and Financial Results

RNS Number : 7058T
Botswana Diamonds PLC
29 March 2021
 

29th March 2021

 

 

Botswana Diamonds PLC ("Botswana Diamonds" or the "the Company")

Unaudited Interim Statement and Financial Results for the Six Months Ended 31 December 2020

 

Botswana Diamonds (AIM: BOD) is pleased to announce its unaudited interim results for the six months ended 31 December 2020 ("Period") during which time the Company has made significant progress on its diamond development projects in both Botswana and South Africa.

 

Highlights

 

· A new Diamond bearing kimberlite discovered at Thorny River. A three-dimensional model of the newly discovered River Kimberlite pipe on the Thorny River property in South Africa was published in December following a successful reverse circulation drilling campaign.  A sample of these drill chips produced eleven diamonds and abundant kimberlitic indicators including G10 and eclogitic garnets.

· Following the Period end, the company entered into a cooperation agreement to fund exploration of its prospecting licence assets in Botswana with Diamexstrat Botswana Pty Ltd ("DESB"), which in turn has an alliance agreement with Burgundy Diamond Mines Limited ("Burgundy" ASX: BDM). 

· Progress has been made on the Maibwe joint venture with core being further sampled for fresh microdiamond work.

 

Botswana

 

· Following the Period end, the company entered into a cooperation agreement to fund exploration of its prospecting licence assets in Botswana with Diamexstrat Botswana Pty Ltd ("DESB"), which in turn has an alliance agreement with Burgundy Diamond Mines Limited ("Burgundy" ASX: BDM). 

· BOD's prospecting assets comprise the recently acquired Sekaka Diamonds Exploration Pty Ltd ('Sekaka') database and Prospecting Licenses, as well as the Prospecting Licences held by BOD's subsidiary, Sunland Minerals Pty Ltd ("Sunland Minerals").  Highlights of this agreement include:

o DESB (and its partner, Burgundy) can earn up to a 70% interest in BOD's Botswana Sunland Minerals and Sekaka's Prospecting Licences.

o BOD can earn a 15% interest in Prospecting Licences held by DESB (and partners) on the first US$1.5m spent on exploration by DESB where BOD's database assists in the discovery of a primary kimberlite.

o On 3rd party Prospecting Licences where targets are identified in BOD's database, a joint earn-in will be negotiated at the time.

o For new Botswana Prospecting Licences, DESB (and its partner, Burgundy) can earn up to 70%.

o The KX36 diamond discovery is not part of the agreement and remains 100% BOD owned.

· Progress has been made on the Maibwe joint venture with core being further sampled for fresh microdiamond work being undertaken in Canada.  The results of this microdiamond work will enable the liquidator to make a decision on the value of the joint venture so it can progress.

 

South Africa

 

· A three-dimensional model of the newly discovered kimberlite pipe on Thorny River, known as the River Kimberlite was published in December following a high resolution ground gravity survey and a reverse circulation drilling campaign. The best fit model showed an East - West trending body gently dipping to the east with a surface expression of 80 x 40m.

· Samples from this drilling campaign were taken at one metre intervals and twenty of these totalling about 500kg were selected and submitted to an independent processing facility for assessment through screening, dense media separation and hand sorting. 

· Following the Period end, the Company announced that 11 diamonds, 172 G10 pyrope garnets, 623 G9 pyrope garnets, 555 eclogitic garnets, 438 chromites and 268 chromium diopsides (clinopyroxene) were recovered at sizes between -1.0+0.3mm.  Recoveries of a specific mineral species were capped at 20 grains and thus this picture is a snapshot of the overall sample indicator content. 

· Importantly, all the samples contained abundant kimberlitic indicators. The diamonds are all notably of good colour and clarity and are of commercial quality and in high demand by the market.

· The next step is a detailed core drilling programme which is planned for the dry season.

 

 

Corporate

 

In January 2021 the company arranged a placing with existing and new investors to raise  £363,000 via the issue of 60,500,000 new ordinary shares at a placing price of 0.6p per placing share.Each placing share had one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from 22 January 2021.

 

 

John Teeling

Chairman

29th March 2021

 

 

This release has been approved by James Campbell, Managing Director of Botswana Diamonds plc, a qualified geologist (Pr.Sci.Nat), 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 34-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

James Campbell, Managing Director

Jim Finn, Director

 

 

+353 1 833 2833

+27 83 457 3724

+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
Megan Ray
Rachael Brooks

Said Izagaren

Naomi Holmes

+44 (0) 207 138 3206

+44 (0) 207 138 3553

+44 (0) 207 138 3206

+44 (0) 207 138 3206

+44 (0) 207 138 3206

Teneo

Luke Hogg

Alan Tyrrell

Ross Murphy

 

+353 (0) 1 661 4055

+353 (0) 1 661 4055

+353 (0) 1 661 4055

 

 

 

 

 

 

 

www.botswanadiamonds.co.uk

 

 

Botswana Diamonds plc

Financial Information (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months

 

Six Months

 

Year

 

 

 

 

 

 

 

 

 

Ended

 

Ended

 

Ended

 

 

 

 

 

 

 

 

 

31 Dec 20

 

31 Dec 19

30 Jun 20

 

 

 

 

 

 

 

 

 

unaudited

unaudited

 

audited

 

 

 

 

 

 

 

 

 

£'000

 

£'000

 

£'000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Administrative expenses

 

 

 

 

 

 

 

( 195 )

 

( 194 )

 

( 357 )

Impairment of exploration and evaluation assets

 

 

  -

 

  -

 

( 34 )

OPERATING LOSS

 

 

 

 

 

 

 

 

( 195 )

 

( 194 )

 

( 391 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS BEFORE TAXATION

 

 

 

 

 

 

 

( 195 )

 

( 194 )

 

( 391 )

Income tax expense

 

 

 

 

 

 

 

 

  -

 

  -

 

  -

LOSS AFTER TAXATION

 

 

 

 

 

 

 

( 195 )

 

( 194 )

 

( 391 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchange difference on translation of foreign operations

 

 

 

  48

 

  -

 

( 104 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL COMPREHENSIVE INCOME FOR THE PERIOD

 

 

 

( 147 )

 

( 194 )

 

( 495 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LOSS PER SHARE - basic and diluted

 

 

 

 

 

 (0.03p)

 

 (0.03p)

 

 (0.06p)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED BALANCE SHEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

31 Dec 20

 

31 Dec 19

30 Jun 20

 

 

 

 

 

 

 

 

 

 unaudited

 

 unaudited

 

 audited

ASSETS:

 

 

 

 

 

 

 

 

 '000

 

 '000

 

 '000

NON-CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

 

 

 

 

 

 

  8,287

 

  8,134

 

  8,087

 

 

 

 

 

 

 

 

 

  8,287

 

  8,134

 

  8,087

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and other receivables

 

 

 

 

 

 

 

  5

 

  21

 

  25

Cash and cash equivalents

 

 

 

 

 

 

  39

 

  13

 

  18

 

 

 

 

 

 

 

 

 

  44

 

  34

 

  43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

 

 

 

 

 

 

 

  8,331

 

  8,168

 

  8,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES:

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

Trade and other payables

 

 

 

 

 

 

 

( 486 )

 

( 425 )

 

( 433 )

TOTAL LIABILITIES

 

 

 

 

 

 

 

 

( 486 )

 

( 425 )

 

( 433 )

NET ASSETS

 

 

 

 

 

 

 

 

  7,845

 

  7,743

 

  7,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

Share capital - deferred shares

 

 

 

 

 

 

 

  1,796

 

  1,796

 

  1,796

Share capital - ordinary shares

 

 

 

 

 

 

 

  1,803

 

  1,569

 

  1,678

Share premium

 

 

 

 

 

 

 

 

  10,734

 

  10,418

 

  10,564

Share based payments reserve

 

 

 

 

 

 

 

  111

 

  111

 

  111

Retained Deficit

 

 

 

 

 

 

 

 

( 5,427 )

 

( 5,035 )

 

( 5,232 )

Translation Reserve

 

 

 

 

 

 

 

 

( 189 )

 

( 133 )

 

( 237 )

Other reserves

 

 

 

 

 

 

 

 

( 983 )

 

( 983 )

 

( 983 )

TOTAL EQUITY

 

 

 

 

 

 

 

 

  7,845

 

  7,743

 

  7,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Share based

 

 

 

 

 

 

 

 

 

 Share

 

 Share

 

 Payment

 

 Retained

 

 Translation

 

 Other

 

 Total

 

 Capital

 

 Premium

 

 Reserves

 

 Deficit

 

 Reserve

 

 Reserve

 

 Equity

 

 '000

 

 '000

 

 '000

 

 '000

 

 '000

 

 '000

 

 '000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

At 30 June 2019

  3,237

 

  10,300

 

  111

 

( 4,841 )

 

( 133 )

 

( 983 )

 

  7,691

Issue of shares

  128

 

  128

 

  -

 

  -

 

  -

 

  -

 

  256

Share issue expenses

  -

 

( 10 )

 

  -

 

  -

 

  -

 

  -

 

( 10 )

Total comprehensive loss

 

 

 

 

 

 

( 194 )

 

  -

 

  -

 

( 194 )

At 31 December 2019

  3,365

 

  10,418

 

  111

 

( 5,035 )

 

( 133 )

 

( 983 )

 

  7,743

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue of shares

  109

 

  153

 

  -

 

  -

 

  -

 

  -

 

  262

Share issue expenses

  -

 

( 7 )

 

  -

 

  -

 

  -

 

  -

 

( 7 )

Total comprehensive loss

 

 

 

 

  -

 

( 197 )

 

( 104 )

 

  -

 

( 301 )

At 30 June 2020

   3,474

 

  10,564

 

  111

 

( 5,232 )

 

( 237 )

 

( 983 )

 

  7,697

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issue of shares

  125

 

  175

 

  -

 

  -

 

  -

 

  -

 

  300

Share issue expenses

  -

 

( 5 )

 

  -

 

  -

 

  -

 

  -

 

(5 )

Total comprehensive loss

  -

 

 

 

  -

 

( 195 )

 

  48

 

  -

 

( 147 )

At 31 December 2020

  3,599

 

  10,734

 

  111

 

( 5,427 )

 

( 189 )

 

( 983 )

 

  7,845

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CONDENSED CONSOLIDATED CASH FLOW

 

 

 

 

Six Months

 

Six Months

 

 Year

 

 

 

 

 

 

 

 

 

Ended

 

Ended

 

 Ended

 

 

 

 

 

 

 

 

 

31 Dec 20

 

31 Dec 19

30 Jun 20

 

 

 

 

 

 

 

 

 

 unaudited

 

 unaudited

 

 audited

 

 

 

 

 

 

 

 

 

 '000

 

 '000

 

 '000

CASH FLOW FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

Loss for the period

 

 

 

 

 

 

 

 

( 195 )

 

( 194 )

 

( 391 )

Impairment of exploration and evaluation assets

 

 

 

  -

 

  -

 

  34

Exchange movements

 

 

 

 

 

 

 

 

  1

 

( 4 )

 

  5

 

 

 

 

 

 

 

 

 

( 194 )

 

( 198 )

 

( 352 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Movements in Working Capital

 

 

 

 

 

 

 

  73

 

  46

 

  35

NET CASH USED IN OPERATING ACTIVITIES

 

 

 

 

( 121 )

 

( 152 )

 

( 317 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

Exploration costs capitalised

 

 

 

 

 

 

 

( 152)

 

( 99 )

 

( 175 )

NET CASH USED IN INVESTING ACTIVITIES

 

 

 

 

 

( 152 )

 

( 99 )

 

( 175 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

Proceeds from share issue

 

 

 

 

 

 

  300

 

  256

 

  518

Share issue costs

 

 

 

 

 

 

 

 

(5 )

 

( 10 )

 

( 17 )

NET CASH GENERATED IN INVESTING ACTIVITIES

 

 

 

 

  295

 

  246

 

  501

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCREASE/(DECREASE) IN CASH AND CASH EQUIVALENTS

 

  22

 

( 5 )

 

  9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of the period

 

 

 

  18

 

  14

 

  14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effect of foreign exchange rate changes

 

 

 

 

 

( 1 )

 

  4

 

( 5 )

CASH AND CASH EQUIVALENT AT THE END OF THE PERIOD

 

 

 

  39

 

  13

 

  18

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes:

 

1.    INFORMATION

 

The financial information for the six months ended 31 December 2020 and the comparative amounts for the six months ended 31 December 2019 are unaudited. The financial information above does not constitute full statutory accounts within the meaning of section 434 of the Companies Act 2006.

 

The Interim Financial Report has been prepared in accordance with IAS 34 Interim Financial Reporting as adopted by the European Union.

 

The accounting policies and methods of computation used in the preparation of the Interim Financial Report are consistent with those used in the Group 2020 Annual Report, which is available at www.botswanadiamonds.co.uk

 

The interim financial statements have not been audited or reviewed by the auditors of the Group pursuant to the Auditing Practices board guidance on Review of Interim Financial Information.

 

 

2.  DIVIDEND

 

No dividend is proposed in respect of the period.

 

 

3.  LOSS PER SHARE

 

Basic loss per share is computed by dividing the loss after taxation for the period available to ordinary shareholders by the weighted average number of ordinary shares in issue and ranking for dividend during the period.

 

Diluted loss per share is computed by dividing the loss after taxation for the period by the weighted average number of ordinary shares in issue, adjusted for the effect of all dilutive potential ordinary shares that were outstanding during the period.

 

 

The following table sets forth the computation for basic and diluted earnings per share (EPS):

 

 

 

Six Months Ended

 31 Dec 20

 

Six Months Ended

 31 Dec 19

 

 

Year Ended

30 Jun 20

 

£'000

 

£'000

 

£'000

Numerator

 

 

 

 

 

For basic and diluted EPS retained loss

(195)

 

(194)

 

(391)

 

 

 

 

 

 

 

No.

 

No.

 

No.

Denominator

Weighted average number of ordinary shares

 

702,728,751

 

 

621,741,536

 

 

642,643,820

 

 

 

 

 

 

Loss per share - Basic and Diluted

(0.03p)

 

(0.03p)

 

(0.06p)

 

 

 

 

 

 

 

 

 

 

 

 

The following potential ordinary shares are anti-dilutive and are therefore excluded from the weighted average number of shares for the purposes of the diluted earnings per share:

 

 

No.

 

No.

 

No.

Share options

11,410,000

 

11,410,000

 

11,410,000

 

 

 

 

 

 

 

 

 

4.  INTANGIBLE ASSETS

 

 

31 Dec 20

 

31 Dec 19

 

30 June

 

£'000

 

£'000

 

£'000

Exploration and evaluation assets:

 

 

 

 

 

Cost:

 

 

 

 

 

Opening balance

9,385

 

9,299

 

9,299

Additions

152

 

99

 

190

Exchange variance

48

 

-

 

(104)

 

9,585

 

9,398

 

9,385

 

 

 

 

 

 

Impairment:

 

 

 

 

 

Opening balance

1,298

 

1,264

 

1,264

Provision for impairment

-

 

-

 

34

 

1,298

 

1,264

 

1,298

 

 

 

 

 

 

Carrying Value:

 

 

 

 

 

Opening balance

8,087

 

8,035

 

8,035

 

 

 

 

 

 

Closing balance

8,287

 

8,134

 

8,087

 

 

 

 

 

 

 

 

 

 

 

 

 

Regional Analysis

31 Dec 20

£'000

 

31 Dec 19

£'000

 

30 Jun 20

£'000

Botswana

7,130

 

7,106

 

7,025

South Africa

1,109

 

1,022

 

1,038

Zimbabwe

48

 

6

 

24

 

8,287

 

8,134

 

8,087

 

 

Exploration and evaluation assets relate to expenditure incurred in exploration for diamonds in Botswana, South Africa and Zimbabwe. The directors are aware that by its nature there is an inherent uncertainty in exploration and evaluation assets and therefore inherent uncertainty in relation to the carrying value of capitalized exploration and evaluation assets.

 

During the prior year, some licences held by the Group in its subsidiary company Sunland Minerals (Pty) Ltd were relinquished. Therefore, the directors decided to impair the costs of exploration on these licences. Accordingly, an impairment of £34,394 (2019: £435,139) had been recorded by the Group in the year ended 30 June 2020.

 

On 6 February 2017 the Group entered into an Option and Earn-In Agreement with Vutomi Mining Pty Ltd and Razorbill Properties 12 Pty Ltd (collectively known as 'Vutomi'), a private diamond exploration and development firm in South Africa. Pursuant to the terms of the Agreement, Botswana Diamonds earned a 40% equity interest in the project.

 

On 20 July 2020 the Company agreed to acquire the KX36 Diamond discovery in Botswana, along with two adjacent Prospecting Licences and a diamond processing plant. These interests are part of a package held by Sekaka Diamonds. Botswana Diamonds plc acquired 100% of the shares of Sekaka. The vendor was Petra Diamonds. The consideration comprised a cash payment of US$300,000 and a 5% royalty on future revenues.  The cash consideration is payable on a deferred basis with US$150,000 payable on 27 November 2021 and the balance on or before 27 November 2022. The acquisition was completed on 30 November 2020.

 

The directors believe that there were no facts or circumstances indicating that the carrying value of intangible assets may exceed their recoverable amount and thus no impairment review was deemed necessary by the directors.

 

The realisation of these intangible assets is dependent on the successful discovery and development of economic diamond resources and the ability of the Group to raise sufficient finance to develop the projects. It is subject to a number of significant potential risks, as set out below:

 

 

 

 

· licence obligations;

· exchange rate risks;

· uncertainties over development and operational costs;

· political and legal risks, including arrangements with governments for licenses, profit sharing and taxation;

· foreign investment risks including increases in taxes, royalties and renegotiation of contracts;

· title to assets;

· financial risk management;

· going concern; and

· operational and environmental risks.

 

Included in additions for the period are £7,223 (June 2020: £14,599) of wages and salaries and £30,210 (June 2020: £76,910) of directors remuneration which has been capitalized. This is for time spent directly on the operations rather than on corporate activities.

 

 

5.  SHARE CAPITAL

 

Deferred Shares - nominal value of 0.75p per share

Number

 

Share Capital

£'000

 

Share Premium

£'000

At 1 July 2019 and 1 July 2020

239,487,648

 

1,796,157

 

-

At 30 June 2020 and 31 December 2020

239,487,648

 

1,796,157

 

-

 

 

 

 

 

 

 

 

Ordinary Shares - nominal value of 0.25p per share

Number

 

Share Capital

£'000

 

Share Premium

£'000

At 1 July 2019

576,555,235

 

1,441

 

10,300

Issued during the period

51,000,000

 

128

 

128

Share issue expenses

-

 

-

 

(10)

At 31 December 2019

627,555,235

 

1,569

 

10,418

 

 

 

 

 

 

Issued during the period

43,666,667

 

109

 

153

Share issue expenses

-

 

-

 

(7)

At 30 June 2020

671,221,902

 

1,678

 

10,564

 

 

 

 

 

 

Issued during the period

50,000,000

 

125

 

175

Share issue expenses

-

 

-

 

(5)

At 31 December 2020

721,221,902

 

1,803

 

10,734

 

 

 

 

 

 

 

 

Movements in share capital

 

On 18 July 2019, the Company raised £250,000 through the issue of 50,000,000 new ordinary shares of 0.25p each at a price of 0.50p per share to provide additional working capital and fund development costs.

 

On 18 November 2019, a total of 1,000,000 warrants were exercised at a price of 0.60p per warrant for £6,000.

 

On 28 January 2020, the Company raised £250,000 through the issue of 41,666,667 new ordinary shares of 0.25p each at a price of 0.60p per share to provide additional working capital and fund development costs. Each placing share has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per share for a period of two years from 28 January 2020.

 

On 12 June 2020, a total of 2,000,000 warrants were exercised at a price of 0.60p per warrant for £12,000.

 

On 7 September 2020, The Company raised £300,000 through the issue of 50,000,000 new ordinary shares of 0.25p each at a price of 0.60p per share to provide additional working capital and fund development costs. Each placing share has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per share for a period of two years from 7 September 2020.

 

 

6.  SHARE BASED PAYMENTS

 

WARRANTS

 

 

Dec 2020

Jun 2020

Dec 2019

 

Number of Warrants

Weighted average exercise price in pence

Number of Warrants

Weighted average exercise price in pence

Number of Warrants

Weighted average exercise price in pence

 

 

 

 

 

 

 

Outstanding at beginning of the period

105,939,394

0.60

66,272,727

0.60

67,272,727

0.60

Issued

50,000,000

0.60

41,666,667

0.60

-

-

Exercised

-

-

(2,000,000)

 

(1,000,000)

0.60

Expired

-

-

-

-

-

-

 

 

 

 

 

 

 

Outstanding at end of the period

155,939,394

0.60

105,939,394

0.60

66,272,727

0.60-

 

 

 

 

 

 

 

 

 

Further information of the warrants are detailed in Note 5 above.

 

 

7.    POST BALANCE SHEET EVENTS

 

On 22 January 2021 the Company announced that it had raised £363,000 via the placing of 60,500,000 new ordinary shares at a placing price of 0.60p per share. Each placing share has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from 22 January 2021.

 

The net proceeds of the placing will fund ongoing diamond exploration in South Africa and Botswana and will also provide the Company with additional working capital.

 

On 16 February 2021 the Company announced it had entered into a cooperation agreement to fund exploration of its prospecting licence assets in Botswana with Diamexstrat Botswana Pty Ltd ("DESB"), which in turn has an alliance agreement with Burgundy Diamond Mines Limited ("Burgundy" ASX: BDM).  Botswana Diamonds prospecting assets comprise the recently acquired Sekaka Diamonds Exploration Pty Ltd database and Prospecting Licenses, as well as the Prospecting Licences held by Botswana Diamonds subsidiary, Sunland Minerals Pty Ltd.

 

Cooperation Agreement highlights;

 

- DESB (and its partner, Burgundy) can earn up to a 70% interest in BOD's Botswana Sunland Minerals and Sekaka's Prospecting Licences

- BOD can earn a 15% interest in Prospecting Licences held by DESB (and partners) on the first US$1.5m spent on exploration by DESB where BOD's database assists in the discovery of a primary kimberlite

- On 3rd party Prospecting Licences where targets are identified in BOD's database, a joint earn-in will be negotiated at the time

- For new Botswana Prospecting Licences, DESB (and its partner, Burgundy) can earn up to 70%

 

 

8.    APPROVAL

 

  The Interim Report for the period to 31st December 2020 was approved by the Directors on 29th March 2021.

 

 

9.    AVAILABILITY OF REPORT

 

  The Interim Statement will be available on the website at www.botswanadiamonds.co.uk  

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