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Lucapa Finds Buyer for Mothae Deposit

June 25, 2024  |  Leah Meirovich
Mothae diamond mine image

Lucapa will sell its 70% stake in the high-value Mothae site in Lesotho to Lephema Executive Transport, a local company that has provided long-term mining services for the deposit. 

Lephema will give Lucapa a nominal fee of AUD 10,000 ($6,660) for its share, while Mothae Diamonds, which owns the site, will pay the Australian miner AUD 1 million ($665,900). Lephema will also assume all liabilities and guarantee any obligations relating to the deposit, Lucapa said Tuesday

Following the agreement’s completion, Lucapa will continue to provide technical services for Mothae for at least three months. The deal, which does not require approval from the Australian Stock Exchange (ASX) or shareholders, is expected to finalize by September 30. Meanwhile, Lephema has agreed to continue Lucapa’s offtake agreement with manufacturer Safdico for 100% of its rough. The companies signed that contract in 2020. 

Lucapa announced it would offload Mothae in May, in an attempt to focus on its core assets in Angola and Australia. The mine, known for its high-value diamonds, including a 204-carat find in 2022 and a 215-carat rough in 2021, began commercial production in 2019. 

“This agreement is the result of a period of offer and negotiation involving Lucapa and several interested parties,” said Lucapa managing director Nick Selby. “[Lephema] has a successful history with the Mothae diamond mine, having provided long-term contract mining services. Lucapa wanted to, as far as possible, see this mine continue to operate, and [Lephema] is best placed to achieve this.” 

Image: The Mothae mine. (Lucapa Diamond Company)

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Mothae diamond mine image Lucapa Finds Buyer for Mothae Deposit

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