Botswana Diamonds (LON:BOD) said chairman John Teeling has today acquired 3,948,500 shares in the company, or a 3.93 percent stake, at a price of 4.25 pence each. This takes his holding in the company to 7,994,320 shares, or 7.95 percent of the capital.
The company started trading on AIM early last month. 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.
Teeling is one of AIM’s best known deal makers.
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.
The company is already funded for exploration through 2011, with US$2 million in cash.
The company has three exploration licences in the Orapa region of Botswana and it also has opportunities in Zimbabwe and Cameroon.