Botswana Diamonds Acquires Sekaka Diamonds
The acquisition comes with a richly endowed kimberlite in the Kgalagadi Desert that Sekaka recently discovered
Botswana Diamonds PLC have added to their list of projects after acquiring Sekaka Diamonds from Petra Diamonds, this publication has established.
According to a statement published by Botswana Diamonds on the Botswana Exchange (BSE) recently, the entire conditions precedent for the acquisition of Sekaka Diamonds Pty Ltd by Botswana Diamonds have been satisfied. “The transaction has been approved by Petra’s lenders and note holders as well as by the Botswana Minister of Mineral Resources, Green Technology and Energy Security,” reads the statement.
“Sekaka’s Prospecting Licence, which holds the KX36 high-grade kimberlite pipe, has also been extended for a further two years to 30th September 2022.” According to the statement, KX36 is a 3.5Ha kimberlite pipe discovered by Sekaka in the Kgalagadi Desert. The kimberlite is situated approximately 70 km from Gem Diamonds’ Ghaghoo Mine and 260 km northwest of Gaborone. “Sekaka has undertaken extensive exploration work on KX36, including extensive core and Large Diameter Drilling (LDD),” the statement reads.
“There is a historic SAMREC compliant Indicated Resource of 17.9 million tonnes at 35 cpht, and an Inferred Resource of 6.7 million tonnes at 36 cpht, estimated for the pipe by Z-Star in 2016. As Sekaka owns 100% of KX36, gross and net resources are the same. Sekaka is the operator of KX36.”
“We are grateful to the Botswana authorities for the quick approval of our acquisition of the KX36 discovery, the extension of the licence and the award of two surrounding licences. We are convinced that a review and reworking of the existing database on KX36 will identify areas where the grade and volume can be improved. We have significant work done on this and are ready to go when exploration restrictions are lifted,” said Botswana Diamonds Chairman, John Teeling
Teeling further noted that Kimberlite pipes like KX36 are rarely, if ever, found on their own. “It is of major importance that we got two adjacent licences where we are now very hopeful to find other kimberlites,” he added. “The Kgalagadi Desert is a tough environment but finding something as rare as KX36 containing an estimated indicated resource of 17.9m tons at 35cpht is very rare. The potential far outweighs the challenge.”
Sekaka was PetraDiamonds’s exploration vehicle in Botswana and holds three prospecting licences in the Central Kgalagadi Game Reserve, PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe. Botswana Diamonds, on the other hand, is a United Kingdom-based company focused on diamond exploration and project development. The company holds exploration licences in Botswana.
Botswana Diamonds entered into a sale of shares agreement with Petra Diamonds Limited and Kalahari Diamonds Limited on 18 July 2020 to acquire the entire issued share capital of Sekaka which was held by Kalahari Diamonds, a wholly-owned subsidiary of Petra. Mining publication in Mining Review Africa on July reported that the Botswana Diamonds’ acquisition of Sekaka comprises a cash payment of US$300,000 and a 5 percent royalty on future revenues.
“The cash consideration is payable on a deferred basis with US$150,000 payable on 31 August 2021 and the balance on or before 31 August 2022. The acquisition is subject to customary regulatory approvals,” the publication reported.