Botswana Diamonds has issued 67.2 million new ordinary shares at a placing price of 0.55p per share to raise £370,000, which will be used to fund exploration activities in Botswana and South Africa.
The funds would also provide additional working capital for the company.
Each placing share had one warrant attached with the right to subscribe for one new ordinary share at 0.6p per new ordinary share for a period of two years from 23rd January 2019.
Botswana Diamonds said the placing shares would rank pari passu with the company's existing ordinary shares.
The diamond exploration and project development company recorded a loss after tax of £557,657 for the year ended 30 June 2018 compared to £310,798, a year earlier.
It raised £500,000 early last year to fund its exploration activities.