REG - Botswana Diamonds - Update on JV acquisition of Ghaghoo Diamond Mine

Botswana DiamondsAnnouncement

01/02/2022 07:00

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RNS Number : 2105A  Botswana Diamonds PLC  01 February 2022

1(st) February 2022

 

Botswana Diamonds PLC

("Botswana Diamonds", "BOD" or the "Company")

 

Update on joint venture acquisition of Ghaghoo diamond mine in Botswana

 

The Board of BOD announced in August 2021 that Okwa Diamonds Pty Ltd ("Okwa"),
a joint venture with Vast Resources plc ("VAST") in which BOD has an initial
10% carried interest, had conditionally agreed to acquire Gem Diamonds
Botswana Pty Ltd ("GDB"), a wholly owned subsidiary of Gem Diamonds Ltd ("Gem
Diamonds"), for a cash consideration of US$4 million. GDB's primary asset is
the fully permitted Ghaghoo diamond mine in central Botswana which is
currently under care and maintenance.

 

Under the terms of the joint venture agreement, VAST was responsible for
funding Okwa with the first US$15 million of funding required for the purposes
of carrying out due diligence, acquiring GDB and placing the mine back into
production. Completion was subject to a number of conditions (with a long stop
date of 31 January 2022) including relevant regulatory and competition
authority approvals within Botswana which have now been fulfilled and written
approvals have been obtained from the Competition Authority and, most recently
in December 2021, the Ministry of Mineral Resources, Green Energy and
Technology of the Government of the Republic of Botswana.

 

VAST has informed the Boards of BOD and Gem Diamonds that they do not intend
to proceed with the transaction.

The Board of BOD has identified alternative potential partners to replace VAST
as its joint venture partner in Okwa and has confirmed to Gem Diamonds its
commitment to conclude the transaction as originally envisaged as soon as
possible.  BOD, VAST and Gem Diamonds are working together towards a mutually
beneficial outcome and have agreed to extend the long stop date under the sale
agreement from 31 January 2022 to 31 March 2022 to allow BOD to secure an
alternative joint venture partner. The new partner replacing VAST in the Okwa
joint venture may require further approval from the relevant Government of
Botswana authorities.

A further announcement will be made in due course.

Further information on Okwa

BOD acquired its 10% carried interest in Okwa in consideration of the services
it has provided to Okwa and does not currently have a funding commitment to
Okwa nor does BOD currently intend to provide further funding under its
earn-in arrangements. BOD's interest in Okwa will be accounted for as an
investment. Under the joint venture agreement, while BOD will be appointed
(subject to agreement of the relevant documentation) as the operator of the
Ghaghoo mine, the operational team will be directly employed by Okwa and BOD
may recharge identified executive management costs to Okwa.

 

 

This release has been approved by James Campbell, Managing Director of
Botswana Diamonds plc, a qualified geologist (Pr.Sci.Nat), a Fellow of the
Geological Society of South Africa, a Fellow of the Southern African Institute
of Mining and Metallurgy, a Fellow of the Institute of Materials, Metals and
Mining (UK) and with over 35-years' experience in the diamond sector.

 

The information contained within this announcement is deemed by the Company to
constitute inside information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 as it forms part of UK Domestic Law by virtue of
the European Union (Withdrawal) Act 2018.

 

The person who arranged the release of this announcement on behalf of the
Company was James Campbell.

 

A copy of this announcement is available on the Company's website, at
www.botswanadiamonds.co.uk (http://www.botswanadiamonds.co.uk)

Enquiries:

 Botswana Diamonds PLC

John Teeling, Chairman

                                        +353 1 833 2833
 James Campbell, Managing Director

                                        +27 83 457 3724
 Jim Finn, Director

                                          +353 1 833 2833
 Beaumont Cornish - Nominated Adviser     +44 (0) 020 7628 3396

Michael Cornish

 Roland Cornish
 Beaumont Cornish Limited - Broker        +44 (0) 207 628 3396

Roland Cornish

 Felicity Geidt
 First Equity Limited -  Joint Broker     +44 (0) 207 374 2212

Jason Robertson

 Blytheweigh - PR                         +44 (0) 207 138 3206

Megan Ray

Rachael Brooks                          +44 (0) 207 138 3553

 Said Izagaren                            +44 (0) 207 138 3206

 Naomi Holmes                             +44 (0) 207 138 3206

                                          +44 (0) 207 138 3206
 Teneo

 Luke Hogg                                +353 (0) 1 661 4055

 Alan Tyrrell                             +353 (0) 1 661 4055

 Ross Murphy                              +353 (0) 1 661 4055

 

www.botswanadiamonds.co.uk (http://www.botswanadiamonds.co.uk)

 

Beaumont Cornish Limited, which is authorised and regulated in the United
Kingdom by the Financial Conduct Authority, is acting as nominated adviser to
the Company in relation to the matters referred herein. Beaumont Cornish
Limited is acting exclusively for the Company and for no one else in relation
to the matters described in this announcement and is not advising any other
person and accordingly will not be responsible to anyone other than the
Company for providing the protections afforded to clients of Beaumont Cornish
Limited, or for providing advice in relation to the contents of this
announcement or any matter referred to in it.

 

 

 

ENDS

 

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