RAPAPORT… Lucapa Diamond Company has completed a sale of new shares that successfully raised AUD 5.25 million ($3.6 million) to fund its search for the kimberlite source of its high-value alluvial stones.
The proceeds of the rights issue will help the miner excavate and process the first kimberlite samples from the Lulo area in Angola, where the company’s alluvial mine has produced several large diamonds in recent years. Lucapa will also use the money to preserve the mining assets it suspended because of the Covid-19 pandemic, as well as for other company expenses, it said Wednesday.
Lucapa offered investors an extra share for every five they already owned, pricing each new share at AUD 0.05 ($0.03).
“During such unprecedented times, we were both delighted and appreciative to see such a strong show of support for our plans and strategies in the diamond sector, resulting in the maximum amount of [AUD] 5.25 million being raised,” said Lucapa managing director Stephen Wetherall.
Image: The Lulo alluvial mine. (Lucapa Diamond Company)
Lucapa Raises $3.6M for Lulo Kimberlite Hunt
The Bottom Line
- Lucapa completed a rights issue raising AUD 5.25 million ($3.6 million) to finance kimberlite exploration at Lulo.
- Funds will support excavation and processing of initial kimberlite samples and preservation of suspended mining assets.
- The company offered one new share for every five held at AUD 0.05 each, reaching the maximum fundraising target.
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