Irish exploration company African Diamonds, which is listed on London's AIM market, is to increase its stake in the AK6 diamond project in Botswana.
Late last year, Canadian-listed Lucara, part of the Lundin Group, took over De Beers' 70.3% stake in AK6.
An agreement with Lucara gave African Diamonds an option to increase its stake from 29% to 40% for £4.8m. The Irish company has now taken this option ahead of the April 14 deadline.
African Diamonds is placing just over 24 million shares at a price of 40p per share to raise around £9.6m to help fund the deal. The new funds will also go towards an early work programme on the mine, according to chairman John Teeling.
