David Lenigas, boss of Lonrho Africa, has negotiated a £1.5 million investment in southern Africa-focused Nare Diamonds.

AIM-quoted Lonrho, which recently spent £5 million on ten per cent of imminent AIM uranium float Brinkley Mining, is taking 17 per cent of Nare at 10.4p. Nare is headed by Charles Mostert, ex-head of Petra Diamonds' acquisition Crown Diamonds, and has 80 per cent of South Africa's formerly productive Schmidtsdrift diamond mine, which started producing gems again last month.

The company also has interests in other diamond projects in the region, such as Klipspringer, Groen River and the Kamfersdam kimberlite pipe and tailings operation. This investment is part of Lenigas' strategy to beef up Lonrho Africa in resources, infrastructure and upmarket tourism in southern Africa and should bring some cheer to the shares, up 1p today at 22.5p.