Lucapa raises funds for second mine
PERTH (miningweekly.com) – Diamond miner Lucapa Diamond Company has secured a $15-million finance facility to develop Phase 1 of its Mothae kimberlite diamond project, in Lesotho.
The three-year debt facility has been arranged with a private Singaporean company, and will be repayable in eight quarterly payments starting in December next year, by which time Lucapa expected Mothae to be in steady-state production under its Phase 1 development plan.
Under Phase 1, Lucapa will process about two-million tonnes of mainly weathered, near-surface kimberlite material at a rate of 720 000 t/y, over the first three years of operation. The Phase 2 development plan will only be implemented once Phase 1 has been fully commissioned.
“The $15-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,” said MD Stephen Wetherall.
“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.”
The debt facility will carry an interest rate of 13% a year, and included provisions for the financier to convert the last two scheduled quarterly payments worth $3.75-million into Lucapa shares.
Comments
The
content
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation