The three-year debt facility signed in October has been arranged with private Singaporean company Equigold.
Lucapa is scheduled to draw down $10 million of the Equigold facility this month as it remains on track to deliver the updated Phase 1 development plan for the high-value Mothae kimberlite project.
Lucapa has also repaid the $4.3 million bridging facility that it secured in May 2017 to First Class Securities from the company’s available cash reserves.
As previously advised, the Lucapa board had been considering a dual listing on London’s AIM market as part of the Mothae development plan but with the $15 million loan funding for the Phase 1 development secured, the Lucapa board has decided not to pursue the AIM admission.
Optimised Mothae mine plan
In October, Lucapa released its reviewed development plans and optimised pit design and mine plans for Mothae to maximise targeted diamond production and cash flows.
The review and optimisation work has now been completed and the new mine development plan has been adopted by both the Mothae and Lucapa boards and the Government of the Kingdom of Lesotho, which retains a 30% interest in Mothae.
The new mine development plan has resulted in improvements to the original targeted Mothae development plan.
The improvements in targeted kimberlite to be mined, carat production, net cash flows and mine life are derived primarily from increasing the size of the phase 1 diamond plant from 100 tph to 150 tph and pit optimisation reviews.
The targeted mining and treatment period under phase 1 remains unchanged at approximately 34 months, with first production scheduled for early H2 2018.
Feature image credit: Lucapa Diamond Company