Brian Benza
14 November 2007
Over 300 Batswana investors now hold in excess of 15 percent of BSE-listed African Diamonds.
This follows the recent acquisition of over 7.6 million shares in the company by asset management company Investec Botswana on behalf of investors.
The 7.6 million shares, which amount to almost 11 percent shareholding in the gem diamond mining company, were purchased at prices ranging from between P12.33 to P14.18 each.
The company's chairman John Teeling said in a press statement that the company was pleased with the acquisition by Botswana investors, which means that they see value in African Diamonds' shares.
"I am delighted with this purchase by Investec Botswana of behalf of their investors," Teeling said.
"Over 10 percent of African Diamonds is a significant commitment and is very positive news for our shareholders in so far as knowledgeable investors on the ground in Botswana see value in our shares.
"The listing of African Diamonds on the Botswana Stock Exchange as well as AIM is working well."
"Over 300 Batswana now hold more than 15 percent of the company," he said. Through its whlly-owned subsidiary Kukama Mining, African Diamonds was awarded three new exploration licences near Orapa two weeks ago.
The new prospecting licences have brought the amount of land under exploration by African Diamonds alone to 3 473 square kilometres. In addition, the company is prospecting on about 3 700 square kilometres of land near Orapa through a joint venture with De Beers.
Following news of the awarding of the licences, African Diamonds stock has been one of the best performing mining counters on the BSE, gaining by 1.68 percent two weeks ago and by 0.72 percent last week.
"With £3,5-million in cash available to the company, there is more than enough capital to undertake the work set out for this year and probably next year as well," African Diamonds MD James Campbell said in a recent interview with Mining Weekly.
Campbell stated that an important factor in being granted new licences in Botswana was abiding to due process and that African Diamonds benefited from being listed in Botswana where local funding and shareholding was approaching 60 percent.
The company has closed trading on the bourse at P14 since Monday.
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