JOHANNESBURG (miningweekly.com) – Private Singaporean company Equigold is further increasing its shareholding in Africa-focused Lucapa Diamond Company by converting the last two scheduled quarterly repayments, totalling $3.75-million, into Lucapa shares.
The companies in October agreed to enter a $15-million loan facility, which would see Equigold, controlled by investor Simon Lee, buy 2.42-million ordinary fully-paid shares in Lucapa at 26.9c apiece.
ASX-listed Lucapa has drawn down $10-million of the Equigold facility to advance the Phase 1 development of the high-value Mothae kimberlite project in Lesotho.
Mothae is located within 5 km of Gem Diamonds’ Letseng mine, which produces the world’s highest per carat kimberlite diamond production.
Lucapa MD Stephen Wetherall said Lucapa welcomed Lee’s ongoing support for the company and its strategy to grow production of large and premium-value diamonds.
Lucapa plans to start production at Mothae in the second half of 2018.