The Board of Directors of Shumba Energy Ltd has announced the execution of a binding Memorandum of Understanding (the "MoU") between Shumba Energy and Fraser Alexander (Fraser).
Fraser is a trusted mining services partner, delivering world-class outsourced services across the entire mining value chain and is a 100% Black owned, South African registered company, with an established footprint in the Southern African mining industry as well as in other selected countries globally. Shumba Energy has partnered specifically with Fraser to provide coal processing solutions for Shumba Energy’s coal projects in Botswana.
Since 1912 Fraser has been growing its innovative business across the globe with operations on over 200 mining sites in South Africa, Botswana, Brazil, Cote d’Ivoire, Democratic Republic of Congo, Ghana, Mali, Namibia and Tanzania. In addition to materials handling, tailings deposition, rehabilitation, water management and water treatment solutions, Fraser offer end-to-end breaking, crushing, screening, pelletizing, briquetting and mineral processing services that are tailored to the specific ore, waste or run-of-mine needs.
Alan Clegg, Chairman of Shumba Energy, commented, "As I have previously underlined in statements regarding our strategy, the execution of this MoU further demonstrates that at Shumba Energy we state clearly our intent and always action it in the best interests of our stakeholders. Once again, we are moving aggressively forward in selecting our operational partners to support our business model of using specialised outsourced services to execute our projects.
I am very pleased with the addition of Fraser to the team who will bring a particular world class set of skills to ensure that the promised tactical execution of our plans presented to shareholders remains on track in preparation for execution and ultimately start-up of our formal mining operations for thermal coal production and market entry. This remains core to ensure earliest possible revenue streaming from our developed thermal coal assets in Botswana without further significant capital raising just for this purpose and to move actively towards having the ability to fund required equity for further development of its projects.”
This week Minister of Finance & Economic Development, Dr Thapelo Matsheka approached parliament seeking lawmakers approval of Government’s intention to increase bond program ceiling from the current P15 Billion to P30 billion.
“I stand to request this honorable house to authorize increase in bond issuance program from the current P15 billion to P30 billion,” Dr Matsheka said. He explained that due to the halt in economic growth occasioned by COVID-19 pandemic government had to revisit options for funding the national budget, particularly for the second half of the National Development Plan (NDP) 11.
Botswana Stock Exchange (BSE) has this week revealed a gloomy picture of diamond mining newcomer, Lucara, with its stock devaluated and its entire business affected by the COVID-19 pandemic.
A BSE survey for a period between 1st January to 31st August 2020 — recording the second half of the year, the third quarter of the year and five months of coronavirus in Botswana — shows that the Domestic Company Index (DCI) depreciated by 5.9 percent.
Botswana Diamond PLC, a diamond exploration company trading on both London Stock Exchange Alternative Investment Market (AIM) and Botswana Stock Exchange (BSE) on Monday unlocked value from its shares to raise capital for its ongoing exploration works in Botswana and South Africa.
A statement from the company this week reveals that the placing was with existing and new investors to raise £300,000 via the issue of 50,000,000 new ordinary shares at a placing price of 0.6p per Placing Share.
Each Placing Share, according to Botswana Diamond Executives has one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from, 7th September 2020, being the date of the Placing Warrants issue.
In a statement Chairman of Botswana Diamonds, John Teeling explained that the funds raised will be used to fund ongoing exploration activities during the current year in Botswana and South Africa, and to provide additional working capital for the Company.
The company is currently drilling kimberlite M8 on the Marsfontein licence in South Africa and has generated further kimberlite targets which will be drilled on the adjacent Thorny River concession.
In Botswana, the funds will be focused on commercializing the KX36 project following the recent acquisition of Sekaka Diamonds from Petra Diamonds. This will include finalizing a work programme to upgrade the grades and diamond value of the kimberlite pipe as well as investigating innovative mining options.
Drilling is planned for the adjacent Sunland Minerals property and following further assessment of the comprehensive Sekaka database more drilling targets are likely. “This is a very active and exciting time for Botswana Diamonds. We are drilling the very promising M8 kimberlite at Marsfontein and further drilling is likely on targets identified on the adjacent Thorny River ground,” he said.
The company Board Chair further noted, “We have a number of active projects. The recently acquired KX36 diamond resource in the Kalahari offers great potential. While awaiting final approvals from the Botswana authorities some of the funds raised will be used to detail the works we will do to refine grade, size distribution and value per carat.”
In addition BOD said the Placing Shares will rank pari passu with the Company’s existing ordinary shares. Application will be made for the Placing Shares to be admitted to trading on AIM and it is expected that such admission will become effective on or around 23 September 2020.
Last month Botswana Diamond announced that it has entered into agreement with global miner Petra Diamonds to acquire the latter’s exploration assets in Botswana. Key to these assets, housed under Sekaka Diamonds, 100 % subsidiary of Petra is the KX36 Diamond discovery, a high grade ore Kimberlite pipe located in the CKGR, considered Botswana’s next diamond glory after the magnificent Orapa and prolific Jwaneng Mines.
The acquisition entailed two adjacent Prospecting Licences and a diamond processing plant. Sekaka has been Petra’s exploration vehicle in Botswana for year and holds three Prospecting Licenses in the Central Kalahari Game Reserve (Kalahari) PL169/2019, PL058/2007 and PL224/2007, which includes the high grade KX36 kimberlite pipe.