Lucapa Diamond reduces Equigold loan to $5.9 mln

Lucapa Diamond has allotted more than 3,2 million fully paid ordinary shares to Equigold in respect of the quarterly interest and fees due under the terms of the $15 million loan facility.
The outstanding debt has now been reduced to $5.9 million.
Lucapa used the 2017 Equigold loan to help finance the development of the company’s second high-value diamond project, the new 1.1 million tonnes per annum Mothae kimberlite mine in Lesotho.  
When Lucapa secured the debt, it indicated that it would attract an annual interest rate of 13% and other fees.
It was initially a three-year debt facility that would have been repaid in eight quarterly payments commencing December 2018.
However, Lucapa and Equigold amended the repayment terms of the loan agreement late last year to extend the repayment term.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished