Lucapa raises funds to further exploration

PERTH (miningweekly.com) – Diamond miner Lucapa Diamond Company will raise A$16.5-million through a share placement to fund further exploration work at the Brooking diamond discovery, in Western Australia.

The shares, which will be priced at 23c each, will be placed under the company’s existing placement capacity.

Lucapa noted on Monday that it has received firm commitments from three major investors, who have committed to collectively invest A$13-million into the share placement.

The share placement was being done at no discount to the prevailing market price for Lucapa shares, which the company said demonstrated the confidence that major investors had in the company, its projects, and its growth strategy.

The funds would allow Lucapa to launch an aggressive drilling and exploration programme at the Brooking discovery, without diluting the company’s 80% interest in the project, while also positioning the diamond miner to be a first mover in Angola, as the new President sought to attract foreign direct investment by addressing key investment hurdles.

The capital raised would also provide a buffer for the high-value Mothae diamond mine development and early bulk sampling programme, in Lesotho, which was on budget and on schedule to start commercial production in the second half of this year.