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Lucapa Diamond Company finalises Mothae financing facility

Mothae's development will support the flagship operating Lulo Diamond Project.
growing line of stacked coins with sign reading Project Funding
The estimated value of Mothae was recently increased by 31%

Lucapa Diamond Company (ASX:LOM) has finalised all terms for the US$15 million financing facility with Equigold Pte Ltd and executed the legal agreements.

The facility will fund the updated Phase 1 development plan for its 70% owned Mothae kimberlite diamond project located in Lesotho, southern Africa.

READ NOW: Lucapa Diamond Company increases Mothae economics

Lucapa is scheduled to draw down US$10 million of the Equigold facility this month as it remains on track to bring Mothae into production early in the second half of 2018.

Furthermore, Lucapa has repaid the A$5.5 million (US$4.3 million) bridging facility to First Class Securities from available cash reserves as it had planned to do this quarter.

Debt facility details as previously stated

The secured US$15 million three-year debt facility has been arranged with private Singaporean company Equigold Pte Ltd.

The facility carries an annual interest rate of 13% and other fees customary to a facility of this nature.

The facility includes a provision for Equigold, at their election, to convert the last two scheduled quarterly payments (totalling US$3.75 million) into ordinary shares in Lucapa at the lowest one-day VWAP in the 15 days preceding the conversion request.

Background

Lucapa is a growing diamond company with a portfolio of high-quality production, development and exploration assets in Angola, Lesotho, Botswana and Australia

Its flagship asset is the Lulo Diamond Project, which is a partnership over a 3,000 square kilometre concession.

It is a joint venture between Lucapa, who holds a 40% operating interest, Endiama (Angolan government) and Rosas & Petalas – a private partner.

Exploration drilling ongoing at Lulo

Lucapa continues to advance a systematic drilling program to test priority kimberlite targets identified near the high-value Lulo alluvial diamond mining operations in Angola.

Drilling is now focused on the cluster of kimberlite targets located along tributaries draining into and around the prolific Mining Block 8 area.

US$61 million of alluvial diamonds have been recovered and sold to date from the area and Lucapa continues to regularly recover large and premium value diamonds.

A further eight targets have been drilled in this area and kimberlite has been intersected in four of those eight targets – E3, E4, E6 and G510.

READ NOW: Lucapa Diamond Company drills out kimberlite at multiple targets

Drilling of the remaining targets in this cluster near Mining Block 8 will continue throughout the current December quarter.





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