Lesotho – The issuance of the new 10-year mining licence was one of the conditions precedent for ASX-listed Lucapa Diamond Company to acquire a 70% interest in Mothae Diamonds, which has now been fulfilled.
The 46.8 km2 Mothae project (which includes a 26 km2 protected area) is located in the Lesotho Highlands. The mining lease area covers the diamondiferous Mothae kimberlite pie, which has a surface area of 8.8 ha.
The project is also located within close proximity to three diamond mines, just 5 km from the world-class Letšeng diamond mine and just 2 km from an all-weather sealed highway, linking the capital of Maseru to the project.
As part of the acquisition, Lucapa also has the right to extend the mining right for a further 10 years.
Lucapa notes that the Lesotho Ministry of Mining has received a legal challenge against the award of the tender for the acquisition but has advised Lucapa that the challenge is unfounded, without merit and is being vigorously defended.
Lucapa announced its intention to acquire an interest in Mothae Diamonds for US$9 million on 31 January 2017.
Lucapa now holds the mining lease and other assets related to the advanced Mothae kimberlite diamond project in north-east Lesotho.