Gaborone: Botswana Diamonds has raised £525,000 before expenses ($650,000) from the placing of 35 million new ordinary shares with new and existing investors.

The net proceeds will be used to fund ongoing kimberlite drilling at the Frischgewaagt property in South Africa, drilling in Botswana, exploration work in South Africa and in the first stage of the 2017 Alrosa/Botswana Diamonds exploration program in the Orapa and Gope areas of Botswana.

The shares represent approximately 9.37 percent of the company’s issued share capital as enlarged by the placing. Application will be made for the Placing Shares to be admitted to trading on the London Alternative Investment Market AIM and it is expected that the Admission will become effective on or around March 2.

John Teeling, Chairman, commented: “Our exploration activities are gaining momentum. We are drilling at Frischgewaagt, our late stage exploration property in South Africa and we will start drilling in Botswana imminently. The Alrosa team will also commence their fieldwork in early March. The two drilling programs will be completed by the end of March, after which we anticipate a period of six to eight weeks’ analysis. The finance raised will fund these programs and I look forward to providing our shareholders with further updates as appropriate.”