Botswana Diamonds (BOD), a company with dual listings, has added to its position in the potential Maibwe joint venture (JV) in Botswana.
Siseko Minerals has expanded its ownership of the JV from 29% to 50%. 51.7 percent of Siseko is owned by BOD.
Siseko is required to pay P411 800 in consideration, or around £27.215.
In addition, Maibwe has committed to give the BCL Botswana liquidators a 2 percent royalty on any future commercial developments.
Maibwe has 11 prospecting licences with several kimberlite pipes, one of which has reported significant quantities of microdiamonds.
The agreement is subject to several conditions. The completion date is 90 days after the signature date of the agreement.
BOD will fund its share of the consideration (amounting to about £13 600) from existing resources.
Maibwe is effectively dormant and in the last financial period for the year ended May 31, 2020, total assets were nil (with all exploration expenditure expensed) and the loss before tax amounted to about £4 000.
BOD is involved in three diamond exploration companies in Botswana and also holds assets in South Africa.