THE DIAMOND PAGE — Botswana Diamondfields attains producer status

With an agreement to purchase the Roberts Victor (Rovic) diamond mine in South Africa for US$4.3 million, junior explorer Botswana Diamondfields (VSE) may become a producer by the end of May.

Situated 100 km northeast of Kimberley, the Rovic mine contains minable reserves of 2 million tons with an average grade of 35 carats per hundred tons. Botswana plans to spend US$1 million to increase monthly production to 15,000 from 10,000 tons.

To cover the purchase price and pay for the expansion, Botswana has arranged a private placement of $6 million through a unit offering at $3 per unit. Each unit consists of one share and one warrant exercisable at $3 in the first year and $3.50 in the second.

Directors John Darch and Gerald Wright will subscribe for half of the offering through a private holding company.

The Rovic property encompasses several kimberlite pipes along an 800-metre-long fissure system. About 40% of the diamonds produced are of gem quality. Recent upgrades in the underground layout of the mine have improved efficiencies and production levels.

The Rovic purchase is the first step in an expansion drive that could see Botswana acquire additional assets, the company says. Meanwhile, exploration on the junior’s licences in Botswana continues.