Botswana Diamonds takes full control of Thorny River project

Botswana Diamonds now fully owns the Thorny River project in South Africa following a decision to acquire control of Vutomi Mining, a South African associate company.
The board of Botswana Diamonds exercised its pre-emptive right to acquire the outstanding third-party interests in Vutomi following outside interest in acquiring the company, which holds the mineral rights to the Thorny River diamond project as well as other exploration assets.
The consideration for Vutomi comprises about 57 million new ordinary shares in the company which at the closing mid-market price on 28th September 2021 of 1.10p per share, is valued at £627 000.
“We are very positive on the production opportunities for the Thorny River properties owned by Vutomi,” said company chairperson John Teeling.
“… the unsolicited outside offer reinforced our belief that there is something worthwhile in Thorny River. We acted to preserve shareholder value.”
Thorny River is an advanced stage kimberlite exploration property located at the eastern side of a kimberlite dyke and blow system spanning Klipspringer Mine, 15km to the west, and the iconic Marsfontein Mine, 4km to the west.
Plans are in place to re-activate the mining of the Marsfontein gravels and dumps which are also controlled by Vutomi.
It said 26% of Vutomi would be sold for a deferred consideration of $316,333 to a local empowerment partner, Baroville Trade and Investments, to comply with South African requirements on empowerment ownership, which will be funded by a loan from Botswana Diamonds.
On completion, Botswana Diamonds will own 76% of Vutomi.
Vutomi is currently owned by, among others, James Campbell who is also a managing director of Botswana Diamonds.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished