09/10/2017 - 15:14

Lucapa signs $19m facility for diamond project

09/10/2017 - 15:14

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Subiaco-based Lucapa Diamond Company has secured a $US15 million ($A19 million) debt financing facility for development of its Mothae project in Lesotho, southern Africa.

Lucapa signs $19m facility for diamond project
Lucapa's Mothae kimberlite diamond project in Africa.

Subiaco-based Lucapa Diamond Company has secured a $US15 million ($A19 million) debt financing facility for development of its Mothae project in Lesotho, southern Africa.

Lucapa arranged the three-year facility agreement with private Singaporean company Equigold, and will be drawn down on from December next year, which is around the time Lucapa expects the Mothae kimberlite diamond project to be in steady-state production.

The facility carries a 13 per cent annual interest rate, with Lucapa expecting to make eight quarterly payments.

Lucapa bought a 70 per cent stake in Mothae in January, with the Government of the Kingdom of Lesotho holding the other 30 per cent.

“The $US15 million financing facility enables Lucapa to meet one of its key strategic objectives of growing diamond production in the large and premium-value sector – a segment of the global market where sales and pricing has remained robust,” Lucapa managing director Stephen Wetherall said.

“This facility is a significant result for Lucapa and its shareholders.

“It ensures that the company, together with the Government of Lesotho, will bring Mothae on stream in 2018, adding a second cash-producing asset and high-value producing mine to the group that will complement the top-quality diamond production from Lulo.”

Lucapa shares closed unchanged at 26.5 cents each.

 

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