Botswana Diamond's 51.7% owned Siseko Minerals has lifted its stake in the Maibwe JV from 29% to 50%.

"We are delighted that after several years of negotiating with the liquidators of BCL Botswana which held in its portfolio the Maibwe diamond joint venture in the Kalahari of Botswana that we have been able to unlock the corporate logjam and are now able to move ahead to examine properly the true potential of the Maibwe concession," Botswana Diamond's chairman John Teeling said.

The consideration payable to Siseko is Pula 411,800, or about £27,215 (US$21,156).

"In addition, Maibwe has agreed to pay a royalty to the liquidators of BCL Botswana of 2% from any future commercial development," the company said.

Maibwe has 11 prospecting licenses in the Kalahari of Botswana with several kimberlite pipes; one of which has reported significant quantities of microdiamonds, it noted.

The company also noted that Maibwe is effectively dormant and in the last financial period for the year ended 31 May 2020 total assets were nil (with all exploration expenditure expensed) and the loss before tax amounted to about £4,000.

Botswana Diamonds is to fund its share of the consideration, which amounts to about £13,600, from existing resources.

Botswana Diamonds' share price was 1p at market close July 20.