Dual-listed Botswana Diamonds (BOD) has acquired an additional stake in the prospective Maibwe joint venture (JV) in Botswana. Siseko Minerals has increased its stake in the JV from 29% to 50%. BOD holds a 51.7% stake in Siseko.
The consideration payable by Siseko is P411 800 (equivalent to about £27,215). Moreover, Maibwe has agreed to pay a royalty to the liquidators of BCL Botswana of 2% from any future commercial development. Maibwe has 11 prospecting licences with several kimberlite pipes, one of which has reported significant quantities of microdiamonds.
The agreement is subject to several conditions. The completion date is 90 days after the signature date of the agreement. BOD will fund its share of the consideration (amounting to about £13,600) from existing resources. Maibwe is effectively dormant and in the last financial period for the year ended 31 May 2020, total assets were nil (with all exploration expenditure expensed) and the loss before tax amounted to about £4,000.
BOD is involved in three diamond exploration companies in Botswana and also holds assets in South Africa.
