PERTH (miningweekly.com) – Diamond miner Lucapa Diamond Company will raise some A$2.8-million in a share placement to sophisticated and professional investors to advance exploration work at its Lulo kimberlite project, in Angola.
The company on Wednesday said that it would issue more than 25.8-million shares, at a price of 11c each, under its existing placement capacity.
AdvertisementThe issue price represented a 13% discount to Lucapa’s 30-day volume weighted average share price.
In addition to the share placement, the ASX-listed company will also undertake a non-renounceable pro-rata rights issue to raise a maximum of A$3.9-million, with more than 35.6-million shares up for issue.
AdvertisementThe rights issue will be conducted on the basis of one new share for every 14 shares held, at an issue price of 11c each.
The funds raised will go towards advancing exploration work at Lulo, which is aimed at discovering the hard-rock primary source or sources of the high-value alluvial diamonds that Lucapa has been mining at Lulo for the past five years.
Drilling is currently targeted at five kimberlite pipes considered prospective to host diamonds, as well as two additional priority anomalies. Once these existing targets have been drilled, kimberlite bulk samples would be excavated for processing to test for diamonds.
The bulk sampling is expected to take place between May and June this year.