Botswana Diamonds acquires control of the Thorny River Project

By Published On: September 29th, 2021Categories: Corporate announcement

Highlights

  • Botswana exercises it’s pre-emption right to acquire control of Vutomi
  • Control of Vutomi gives BOD the opportunity to develop the Thorny River Project
  • Thorny River is an advanced stage kimberlite exploration property located at the eastern side of a kimberlite dyke and blow system spanning Klipspringer Mine, 15km to west, and the iconic Marsfontein Mine, 4km to the west.
  • Plans are in place to re-activate the mining of the Marsfontein gravels and dumps which are also controlled by Vutomi.

Following outside interest in acquiring Vutomi Mining the South African associate company of Botswana Diamonds, the board of Botswana has today exercised its pre-emptive right to acquire the outstanding third-party interests in Vutomi Mining (Proprietary) Limited (“Vutomi Mining”) and Razorbill Properties 12 (Proprietary) Limited (“Razorbill”) (together “Vutomi”) (the “Acquisition”). Vutomi holds the mineral rights to the Thorny River Diamond Project (“Thorny River” or the “Project”) as well as other exploration assets.

The consideration for Vutomi comprises 56,989,330 new ordinary shares in the Company which, at the closing mid-market price on 28th September 2021 of 1.10p per share, is valued at £627k. The Company has agreed that immediately on completion of the Acquisition, the Company will sell 26% of Vutomi for a deferred consideration of US$316,333 to the Company’s local South African Empowerment partner, Baroville Trade and Investments 02 Proprietary Limited (“Baroville”), in order to comply with South African requirements on empowerment ownership, which will be funded by a loan from Botswana Diamonds. On completion, the Comp