Firestone raises £5m
Article Date: Jul 16 2008Gem miner and explorer Firestone Diamonds has raised £5 million at 85p a share to accelerate projects at Orapa and Tsabong in Botswana.
The AIM-quoted company, headed by second-generation entrepreneur Philip Kenny, says some of the proceeds of the placing will speed evaluation work on the promising BK11 and BK16 kimberlite prospects at Orapa in northern Botswana, a gem-rich area containing the largest diamond mine in the world. Firestone suggests this work should enable it to define an inferred resource for BK11 and BK16.
The rest of the money raised will go on Tsabong in south-west Botswana, which contains the 180-hectare NMK1 kimberlite and is 280 km from Jwaneng, the world’s most profitable diamond mine. The company says it expects to release sampling results from MK1 and other Tsabong kimberlites before October.
Firestone, whose shares rose from 78p to 200.5p between 2006 and last May, has recently fallen out of favour with investors. Now 85.5p, down 5.5p and only 0.5p above the placing price, they value the company at £47.5 million.
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