Lucapa Diamond has entered into a conditional binding sales and purchase agreement with a local Lesotho company, Lephema Executive Transport to divest its 70% stake in Mothae Diamonds, which owns the Mothae Diamond Mine in Lesotho.
It said the agreement comes after a strategic review of the company’s portfolio of assets undertaken by the newly restructured board of directors.
Under the agreement, Lucapa will receive a nominal purchase price of A$10,000 ($6,647) from Lephema Executive and about A$1 million ($664, 776) from Mothae in outstanding technical services payments.
Lephema Executive will assume all liabilities and guarantee obligations relating to Mothae currently held by Lucapa.
Following completion, Lucapa will continue to provide technical services to Mothae under the technical services agreement on normal commercial terms for a minimum of three months.
“The signing of this agreement is a key step towards Lucapa streamlining its portfolio and executing the new strategy which will focus on assets in Australia and Angola,” said Lucapa Managing Director and chief executive Nick Selby.
Lephema Executive has a history with Mothae as it provided long-term contract mining services.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
