AIM-listed exploration company African Diamonds is to raise roughly £9.6 million (€10.9 million) through a placing of new shares. Half of the sale proceeds will be used to increase its stake in the AK6 diamond mine in Botswana from 29 to 40 per cent.

The remainder of the proceeds will be used to fund an early works programme on this mine, and to explore African Diamonds’ other diamond targets in Botswana.

The company directors and their families are to invest a total of £1 million in the placing.