HomeDiamonds & GemstonesLucapa secures US$7 million of development funding

Lucapa secures US$7 million of development funding

ASX-listed Lucapa Diamond Company and the Government of Lesotho have announced the finalisation of US$7 million of development funding.

The funding from the Industrial Development Corporation of South Africa will be used for the Mothae kimberlite diamond mine in Lesotho.

The funding from the IDC, which is one of the largest development financiers in southern Africa, followed the execution of the loan and ancillary agreements and completion of all condition’s precedent to the approved Term Sheet, as announced to the ASX on 25 October 2018.

In addition to the funding from the IDC, proceeds of ~US$1.5 million have also been received by Mothae from the sale of diamonds (~4,000 carats) recovered from various campaigns, in which material from multiple sources was processed through the bulk sampling plant.

The sale included prices of up to US$15,000 per carat for individual diamonds.

As announced to the ASX on 5 December 2018, commercial diamond recoveries have now commenced through the new 1.1 Mtpa Mothae treatment plant, which is being ramped up to its nameplate capacity.

The new Mothae plant includes advanced diamond recovery technology including two XRT modules designed to recover large and rare Type IIa diamonds ahead of the secondary crushing circuits to avoid breakage.

Lucapa looks forward to updating progress with the ramping up of the new plant, and commercial diamond recoveries, in the company’s December 2018 Quarterly Report.

The first sale of commercial diamonds from Mothae is scheduled for Q1, 2019.