ASX-listed Lucapa Diamond Company has secured major investment backing from a new cornerstone investor and existing shareholders to advance its diamond projects and continue delivering on its growth strategy.
It positions Lucapa to be a first mover in Angola as the new Angolan President seeks to attract foreign direct investment by addressing key investment hurdle and provides a working capital buffer for the high-value Mothae diamond mine development and early bulk sampling program in Lesotho, which remains on budget and on schedule for commercial production in H2 2018.
The cornerstone investor has significant global resource development experience and has been invited to join the Lucapa board.
Angolan government initiatives to attract additional foreign investment
The new Angolan President, Joao Lourenco, and the new Minister of Mineral Resources and Petroleum, the Honourable Diamantino Azevedo, have set the diamond authority, Endiama E.P., a goal of doubling Angola’s diamond production to 14 million carats within four years.
To do so, President Lourenco has publicly outlined how he believes this could be achieved through the design and implementation of new investment policies and to re-evaluate its marketing policies to attract investors.
Lucapa and other diamond companies have been invited by Minister Azevedo and Endiama E.P to discuss these positive initiatives.
As such, and in anticipation of a positive outcome, Lucapa and its local Angolan partners are devising a growth strategy at Lulo, to build on the successful alluvial mining operations and kimberlite exploration venture.
Lucapa has been operating successfully in Angola for 10 years and is well positioned to be a first mover and be a part of Angola’s future development.
The funding will also enable Lucapa to launch an extensive follow-up exploration program, including further drilling, at the Brooking diamond discovery in Western Australia’s West Kimberley region.