Miner Lucapa Sells to Industry Veteran’s Conglomerate 

Industry veteran Dev Shetty has purchased Lucapa Diamond Company and all of its assets through his Dubai-based conglomerate Gaston International DMCC. 

Gaston is part of Shetty’s Jemora Group, which specializes in metal and mining investments, the trading of precious metals and gemstones, and gemstone auctions. In January, the group launched Jemora Gemhouse, a new auction house for high-value gemstones that curates stones directly for potential buyers. Shetty is also the former chief operating officer of Gemfields and the founder and former CEO of Fura Gems. 

Gaston signed a binding agreement with Lucapa’s administrators for the purchase on Tuesday, they said Thursday. The move comes after Lucapa entered voluntary administration in May due to financial difficulties stemming from the weak market.  

Shetty called the investment in Lucapa a “defining moment” for the group, which purchased the Chacarilla copper mine in Bolivia two weeks earlier.  

“This acquisition adds to our portfolio of world-class assets,” he commented. “While the global diamond market faces a challenging period, our team — recognized for revitalizing underperforming assets and developing some of the world’s largest gemstone mines — is confident in unlocking Lulo’s full potential.” 

Gaston’s acquisition of the company will offer Lucapa’s creditors a 100% repayment and will provide an estimated return to shareholders of AUD 0.018 ($0.012) per share, higher than the miner’s last traded price of AUD 0.014 ($0.009) per share, the administrators stated. 

Since May, the administrators have been conducting a dual-track process to either secure financing for or sell Lucapa. The administrators received four binding offers, and after negotiations with each party, decided that Gaston’s offer provided the best outcome for stakeholders. 

After Gaston completes the transaction, it will focus on increasing Lulo production, accelerating kimberlite exploration in Angola, and continuing a strategic review of the Merlin mine in Australia, Shetty explained.  

“By leveraging our expertise and collaborating with Lucapa’s partners, we aim to unlock growth, create sustainable value, and strengthen Gaston’s leadership in the global diamond industry,” he added. “We will also continue expanding our mining portfolio, with a focus on energy transition, precious metals, and gemstones.” 

The purchase will include Lucapa’s 40% stake in the Lulo mine, its 39% stake in the Lulo kimberlite exploration program, and the Merlin mine and Brooking lamproite exploration project in Australia. The deal is subject to approval from creditors, Gaston obtaining regulatory approval, and the court granting permission to transfer the shares. 

Image: The Lulo mine. (Lucapa Diamond Company)