New diamond mine on the way after Lucapa secures $19m funding

Pic: Tyler Stableford / Stone via Getty Images
Diamond miner Lucapa has boosted its coffers by $19 million to fund the development of a new diamond mine in southern Africa.
The Mothae diamond project in the landlocked country of Lesotho is due in operation next year. It will be Lucapa’s second diamond mine.
Perth-based Lucapa (ASX:LOM) was steady at 26c on Monday.
Lucapa secured a 70 per cent stake in Mothae in January after winning an international tender from the Lesotho government.
Singaporean company Equigold supplied the three-year loan.
“Funding ensures the company, together with the Government of Lesotho, will bring Mothae on stream in 2018, adding a second cash producing asset and high-value producing mine to the group that will complement the top-quality diamond production from Lulo,” Lucapa managing director Stephen Wetherall told investors.
Lesotho is in the heart of the world’s highest-value cluster of kimberlite mines. Lucapa plans to begin production there in 2018.
Today’s news comes after Lucapa announced it would auction a giant 163-carat stone hailed as “the world’s most beautiful” later this year.
The emerald cut diamond is the biggest gem cut from a record 404-carat stone discovered at the company’s eastern Anglola diamond mine, Lulo, in February 2016.
Lucapa has a market cap of about $89 million.
UNLOCK INSIGHTS
Discover the untold stories of emerging ASX stocks.
Daily news and expert analysis, it's free to subscribe.
By proceeding, you confirm you understand that we handle personal information in accordance with our Privacy Policy.