GABORONE, Botswana (miningweekly.com) – The government of Lesotho is processing the sale of 75% of the Mothae diamond development in Lesotho by Toronto- and Botswana-listed Lucara Diamonds.
Lucara, which mines at Karowe in the Orapa diamond field in central Botswana, is selling its 75% Mothae stake to Paragon Diamonds for $8.5-million, Lucara COO Paul Day told the thirteenth Botswana Resource Sector Conference here.
The Lesotho government holds the remaining 25% shareholding in Mothae, situated on the southern edge of the Kaapvaal Craton, which hosts the diamondiferous northern Lesotho kimberlite field.
Next to Gem Diamonds' Letseng mine, Mothae has an indicated resource of one-million carats and an inferred resource valuation of $1-billion.
However, Lucara is divesting from Mothae and selling its ownership in it.
Lucara achieved an excellent 2014 performance at its Karowe flagship in Botswana, which last year generated revenues of more than $265-million and a cash operating margin of $529/ct.
Lucara has cash of $87-million on hand, no debt and is a regular payer of dividends.
Its market capitalisation is slightly shy of C$800-million and all of its assets are located in Southern Africa.
Karowe is the company's 100%-owned operating asset on which building started in 2010 and commissioning took place in 2012.
It has two exploration sites in Botswana on which initial exploration will begin this year.