Botswana Diamonds is keeping risk off its balance sheet and retaining focus on a large suite of prospects in SA, Botswana and Zimbabwe as it advances an expensive study into a potential mine. Botswana Diamonds would have needed to raise about £1m to fund the exploration and early-stage bulk sampling work to advance its confidence in the Thorny River diamond kimberlite dykes in SA, which would have meant stopping work in exploring other prospects, said CEO James Campbell. The company is headed by the successful pairing of chair John Teeling, who chaired African Diamonds, with Campbell who was MD at the same company and later the CEO of alluvial diamond miner Rockwell Diamonds. Campbell had a long history with De Beers. To avoid putting debt on Botswana Diamonds’ balance sheet or diluting shareholders with a rights issue to raise the money, the company has farmed out the early-bulk sampling work at Thorny River to Palaeo Minerals in exchange for 80% of revenue from diamond sales going...

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now