The precious stone explorer, which holds licences in Botswana and Cameroon, issued over 28mln shares at 1p apiece.
That represented a 27.5% discount on yesterday's closing mid-price and sent shares 33% lower today to 0.93p.
Chairman John Teeling said the money raised will be used to fund the company's exploration projects in Botswana and other working capital requirements.
The firm’s partner in a 50:50 joint venture is Russia’s Alrosa, the world's largest diamond producer.
Under the deal, an eight person Alrosa geological team are being paid to identifying a series of targets in the Orapa area of Botswana.
On Tuesday, Botswana said it was completing the second phase of exploration on three of its joint venture blocks in the area.
“This work is focusing on areas identified in the 2014 exploration campaign,” said Teeling.
“Results will begin to flow by mid-2015. I am hopeful that drilling targets will be pinpointed.”