Lucapa Diamond completed the first tranche of its capital raising initiative, pocketing A$870,000 ($543, 896) from investors by issuing over 43.5 million new shares.
The placement shares were priced at A$0.02 (1 US cents) each.
Lucapa chief executive Alex Kidman said earlier this month that the placement will allow the company to fast-track the process of unlocking the Merlin project’s potential in the first quarter of next year.
The company said shareholder approval will also be sought at an extraordinary general meeting expected in mid-January 2025 for 81.0 million shares to be floated to institutional, sophisticated and professional investors at the issue price to raise approximately A$1.6 million ($1 million) before costs.
Approval will also be sought to place around 8.925 million shares to participating directors at the issue price to raise about A$178 000 ($111 343) before costs.
It also wants permission to place 16.5 million shares to directors and senior management at the deemed Issue price to convert up to A$329 000 ($205 798) of accrued fees, remuneration and expenses on the same terms as the placement.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
