Lucapa Diamond has negotiated with its Angolan partners, Endiama and Rosas & Petalas to increase its stake in the Lulo Kimberlite joint venture to 51% from the current 39%.
State-owned diamond company Endiama currently owns a 51% stake in the Lulo Kimberlite JV while the remaining 10% belongs to Rosas & Petalas.
The Lulo Kimberlite JV is an exploration programme to find the source of the alluvial diamonds that the partners are currently recovering in Angola.
Company chief executive Nick Selby said although the negotiations between the shareholders for the majority stake had occurred, Lucapa requested the Minister of Natural Resources for the negotiation committee to be formed so that all of the documents are formalised.
“This will include getting approval from the department of finance for the inclusion of costs previously incurred in the earlier exploration programs carried over into the new minerals investment contract (MIC),” he said.
“This is important as it means that when we find the kimberlite and start a new mine, the funds that we have spent on exploration are repaid to Lucapa.”
Meanwhile, Selby said Lucapa lodged an extension as a backup as while they wait for the signing of the new MIC and before the current licence expires.
Under the Angolan Mining Code, a licence may be extended for two periods of one year each. “We have received acknowledgement of this from the Minerals Department, so, it is business as usual until the new MIC takes effect, which of course we will update you in due course,” he said.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
