Lucapa Diamond has sold its 70% stake in Mothae Diamonds, which owns the Mothae Diamond Mine in Lesotho, to a local company, Lephema Executive Transport.
It said the interest was sold following the fulfilment of the conditions precedent of the sale and purchase agreement.
The divestment, conducted via a public sale process, follows a strategic review of Lucapa’s asset portfolio by the recently restructured board of directors.
“As a result of the divestment, the Mothae operations will be classified as a discontinued operation in the company’s future financial reports,” it said.
Lucapa said in June that it would 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 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.
Lephema has a history with Mothae, as it provides long-term contract mining services.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
