Lucapa Diamond has agreed with New Azilian, a company associated with non-executive director and major Lucapa shareholder Ross Stanley, to defer the repayment date in relation to the $10 million one-year loan facility.
It said in addition to the repayment date being deferred from 29 May 2020 to 31 August 2020, interest payments have been changed from quarterly to being payable at the termination date (effective from fourth quarter 2019) and the previous option to convert interest payments to Lucapa shares has also been removed.
No additional fees or penalties are payable by Lucapa under the amended agreement with New Azilian.
Image credit: Lucapa Diamond
“We extend our sincere thanks and appreciation to New Azilian, Equigold, the Industrial Development Corporation of South Africa and all our shareholders for their continued support of Lucapa’s strategy during this challenging period,” said Lucapa managing director Stephen Wetherall.
Meanwhile, Lucapa has closed the non-renounceable pro-rata rights issue that entitles eligible shareholders to participate on a one for five basis with a free attaching option exercisable at $0.10 each.
Lucapa intends to use the funds raised from the Rights Issue to advance the search for the primary kimberlite sources of the high-value Lulo alluvial diamonds, preserve mining assets suspended as a result of the COVID-19 pandemic and for general working capital purposes.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
