Botswana Diamonds (LON:BOD) began trading on AIM this morning, bringing with it a familiar set of assets and management team.
The new company is led by John Teeling, one of AIM’s best known deal makers. It comprises the exploration assets of African Diamonds which was sold to Lucara Diamond Corp in a share-based deal worth £51 million back in December.
Lucara only had eyes for African Diamond’s AK6 diamond mine and the remaining exploration assets were spun out into the newly formed Botswana Diamonds. As part of the takeover, investors received 0.8 shares in Lucara and one Botswana share for each African Diamonds share held.
With the successful discovery, development and sale of the AK6 diamond mine now behind them Botswana Diamonds management team will now focus on the AK8, AK9 and BK5 kimberlites which are already known to contain diamonds.
"Botswana is the best diamond address in the world,” chairman John Teeling said.
“Botswana Diamonds holds good ground where exploration and drilling has already discovered kimberlites containing diamonds.
“As we have held these licences for a considerable amount of time, we are exploring options such as bulk sampling AK8/AK9 and core drilling BK5.”
The company is already funded for exploration through 2011, with US$2 million in cash.
At 6.5 pence per share Botwana Diamond’s share current share price values the company at around £6.5 million.
The company has three exploration licences in the Orapa region of Botswana and it also has opportunities in Zimbabwe and Cameroon.
Teeling added: “This is a very good time to be in resources. Diamond demand is rising as are prices. Diamonds are hard to find. We have the team, the expertise and the ground."