Lucapa gets A$11.5mln for diamond exploration

Lucapa Diamond has raised A$11.5-million to fund accelerated exploration programmes to take advantage of higher diamond prices.
The company said last week that it had received firm commitments from institutional and sophisticated investors to subscribe for 166,6 million fully paid new ordinary shares in the company at an issue price of $0.075 per share to raise A$12.5 million.
The shares would be issued to a company associated with a non-executive director and substantial shareholder, Ross Stanley, who subscribed for 13,3 million shares in the placement, are subject to shareholder approval at a general meeting to be convened.
Lucapa had said that the initial A$12.5-million placement, coupled with the A$14-million loan repayment to be received from Sociedade Mineira Do Lulo (SML), would help them to settle interest-bearing debt ahead of plan, thereby improving profitability and strengthening the balance sheet.
“This puts Lucapa in a solid financial position where we can realise near-term value catalysts quickly by speeding up the Lulo kimberlite exploration with the dedicated bulk sampling plant, complete the drilling programme at the Brooking project and accelerate revenue and margin growth initiatives,” said Wetherall.
“Importantly, the placement has added an investor with similar downstream ambitions with regards to Merlin diamonds and significant funding capability.”

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