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Lucapa to sign earthmoving deal, lists on Frankfurt Stock Exchange

28th May 2015

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

  

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JOHANNESBURG (miningweekly.com) – Dual-listed Lucapa Diamond Company is set to sign a A$4.5-million deal with unnamed partners to source new Caterpillar earthmoving equipment.

The company, which on Thursday completed a secondary listing on the Frankfurt Stock Exchange, said the new equipment would enable diamond mining at its Lulo diamond concession, in Angola, to scale up to 20 000 m3 a month ahead of schedule.

The equipment, comprising three 740B trucks, one 374F LR excavator, one 140M grader and a D8R bulldozer, was available for immediate delivery. Once dispatched, it could be operational on site within a short timeframe.

Using its existing earthmoving fleet, Lucapa and its partners were on track to achieve the initial Phase 1 diamond mining target of processing 10 000 m3 a month of diamond-bearing alluvial gravels through the 150 t/h diamond plant at Lulo by the end of June.
 
The project partners would dedicate a standalone fleet to kimberlite exploration, enabling a parallel programme with alluvial diamond mining operations.

Lucapa CEO Stephen Wetherall said the commercial terms offered on the Caterpillar financing deal over a 12-month term were the best of a number of financing proposals received by the company to fund the scaling up of diamond mining operations at Lulo.

“Since we signed the term sheet for the original $15-million financing proposal in January, we have made significant funding progress. Lucapa has raised A$4.8-million in fresh equity through a share placement and the Lulo partners have continued to recover high-value diamonds, which have sold for A$3.7-million, leaving the project well-funded.

“We are also now finalising a A$4.5-million fleet financing arrangement for new Caterpillar earthmoving equipment on favourable financing term,” he noted.

Further, Wehterall said that, to procure this equipment externally and have it shipped to Angola, would have taken about four months.

“The Caterpillar deal also provides us with an opportunity to use a similar financing structure to source the additional earthmoving fleet required to ultimately scale up to a processing rate of 40 000 m3 a month.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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