Botswana diamond company African Diamonds plc has undertaken a conditional placing of ordinary shares to raise approximately £9.6 million (US$14.6 million) before expenses. African Diamonds' directors and families will invest, in aggregate, £1 million in the placing (US$1.5 million).

The proceeds of the placing will be used in three ways. Firstly, to increase African Diamonds' share in AK6 to 40%; secondly, to fund African Diamonds' portion of the early works budget on AK6; and thirdly, for general working capital and exploration.

The early works program includes orders for long-lead time capital equipment and mine site development. Exploration will be focused on African Diamonds' 100% owned AK8, AK9 and BK5 projects, all located in the vicinity of AK6 in Botswana.

John Teeling, Chairman, commented: "I am delighted by the support African Diamonds has received from a significant number of institutional investors. The funds raised will be used to increase our stake in the AK6 diamond project to 40%, to fund an early works program on the mine, and to explore promising diamond targets on our Botswana acreage.”