Lucapa raises cash for diamond hunt
PERTH (miningweekly.com) – Diamond miner Lucapa Diamond Company on Tuesday announced plans for a A$12.5-million capital raising to fund accelerated exploration programmes in order to take advantage of higher diamond prices.
The ASX-listed miner on Tuesday said that it had received firm commitments from institutional and sophisticated investors for the placement of 166.6-million shares, at a price of 7.5c each.
The shares will be issued under Lucapa’s existing placement capacity, and the placement was cornerstoned by Sydney- and Singapore-based investment fund, Tribeca Investment Partners.
“We are delighted our vision and track record to become the pre-imminent midtier global diamond company has attracted Tribeca to Lucapa. Our recent and collaborative interaction has identified several opportunities, including venturing with the Kimberley Syndicate to develop a unique provenance offering as Lucapa continues its strategy of moving downstream to capture significant retail margins. We look forward to furthering this opportunity under a memorandum of understanding,” said Lucapa MD Stephen Wetherall.
“This A$12.5-million placement, together with the A$14-million loan repayment to be received from SML, allows us to settle interest-bearing debt ahead of plan, thereby improving profitability and strengthening the balance sheet. This puts Lucapa in a solid financial position where we can realise near-term value catalysts quickly by speeding up the Lulo kimberlite exploration with the dedicated bulk sampling plant, complete the drilling programme at the Brooking project and accelerate revenue and margin growth initiatives.
“Importantly, the placement has added an investor with similar downstream ambitions with regards to Merlin diamonds and significant funding capability.”
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