Lucapa Diamond is set to make offers to eligible shareholders to participate in a share purchase plan (SPP).
Company managing director Stephen Wetherall said the SPP will provide eligible shareholders with an opportunity to apply for up to A$30,000 worth of fully paid ordinary shares in the company at an issue price of A$0.050 per share to raise A$3 million before costs.
The ASX-listed diamond miner announced last Monday that together with its wholly-owned subsidiary, Australian Natural Diamonds had entered into an asset sale agreement with Merlin Operations and its parent entity, Merlin Diamonds to acquire exploration licence EL 26944 and mineral lease MLN 1154 located in the Northern Territory, together with related mining assets.
In consideration of the acquisition, the company has agreed to pay to Merlin Operations a completion payment of A$7,407,785.
The acquisition is conditional on the satisfaction (or waiver) of several conditions precedent, including the company successfully raising at least A$11 million.
The funds from the capital raising are will be applied towards funding the consideration payable to Merlin operations for the acquisition; the stamp duty and taxes for the Merlin acquisition; advancing the Merlin project – geotechnical drilling, exploration and feasibility study.
It will also be used to advance the Lulo joint venture exploration programme in Angola; costs and expenses of the acquisition, SPP and the placement as well as the general working capital.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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