Firestone Diamonds (AIM: FDI) a diamond mining and exploration company, announced that it placed 5,882,353 new ordinary shares of £0.2 each at £0.85 per share to raise £5 million before expenses.
The proceeds of the Placing will be used to accelerate evaluation work at the Company's BK11, BK16 and Tsabong projects in Botswana. At the BK11 and BK16 projects the company plans to recover about 1,000 tonnes of kimberlite for processing. The company hopes to recover between 100-150 carats from each bulk sample.
The Company also intends to accelerate evaluation work at its Tsabong project, where it has identified 14 high interest kimberlites for bulk sampling by large diameter drilling.
Results from a number of the other high interest kimberlites are expected to be released in Q3 2008.