Image credit: Lucapa Diamond
Lucapa Diamond has raised $5.25 million under its non-renounceable pro-rata rights issue which closed on 29 May.
It intends to use the funds raised from the rights issue to advance the search for the primary kimberlite sources of the high-value alluvial diamonds at the Lulo project in Angola.
The funds will also be used to preserve mining assets suspended as a result of the COVID-19 pandemic, for general working capital purposes and to meet the costs and expenses of the rights issue.
“During such unprecedented times, we were both delighted and appreciative to see such a strong show of support for our plans and strategies in the diamond sector, resulting in the maximum amount of $5.25 million being raised,” said company managing director Stephen Wetherall.
“This included support from our loyal shareholders as well as strong demand for the shortfall.”
The Lulo kimberlite exploration programme was set to move to a new phase this month with the excavation and processing of the first kimberlite bulk sample to test for diamonds.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
