TORONTO (miningweekly.com) – Vancouver-based Lucara Diamond Corp has signed a definitive agreement regarding its planned acquisition of fellow junior Motapa Diamonds.

The firms first announced the proposed transaction after signing a letter of intent in March.

Both companies are exploring for diamonds in various parts of Africa, but their most advanced assets are stakes in the Mothae project, in Lesotho, in which Lucara owns 65% and Motapa holds the balance.

Each Motapa share will be exchanged for 0,9055 of a Lucara share, through a plan of arrangement, which has the backing of both companies' boards.

Motapa plans to hold a special meeting of shareholders to consider and vote on the transaction on June 26, the company said.

The transaction requires approval by shareholders owning at least two-thirds of the company's shares.

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