Botswana Diamonds has announced intentions to acquire additional stake in the prospective Maibwe Joint Venture partially owned by BCL, through one of its investment vehicle Siseko Minerals.
According to the company, Siseko Minerals has increased its stake in the prospective Maibwe JV from 29 percent to 50 percent. “We are delighted that after several years of negotiating with the liquidators of BCL Botswana, which held in its portfolio, the Maibwe diamond joint venture in the Kalahari of Botswana, that we have been able to unlock the corporate logjam and are now able to move ahead to examine properly the true potential of the Maibwe concession,” said BD Chairman, John Teeling.
Under the deal, the consideration payable by Siseko is P411,800 (approximately £27,215). In addition, Maibwe has agreed to pay a royalty to the liquidators of BCL Botswana of two percent from any future commercial development. Maibwe has eleven prospecting licenses in the Kalahari of Botswana with several kimberlite pipes; one of which has reported significant quantities of micro-diamonds. BOD will fund its share of the consideration (amounting to approximately £13,600) from existing resources.
Maibwe is effectively dormant and in the last financial period for the year ended 31 May 2020, total assets were nil (with all exploration expenditure expensed) and the loss before tax amounted to approximately £4,000. BOD is involved in three diamond exploration companies in Botswana: the 100% owned Sunland Minerals Pty Ltd and 100 percent owned Sekaka Diamonds and a minority stake in the Maibwe joint venture.
The three companies have diamond exploration licences in the Kalahari Desert. Meanwhile, the company also has a strategic alliance with Diamexstrat Botswana Pty Ltd, which is backed by ASX listed Burgundy Diamond Mines.