Lucapa raises $5.25 million for operational expenses
Lucapa Diamond Company intends to undertake a non-renounceable pro-rata rights issue on a 1 for 5 basis with a free attaching option exercisable at $0.10 each and expiring 2 years from the date of issue.
It is the intention of Lucapa to seek quotation of the options on the ASX, subject to satisfying the ASX conditions for quotation of the options.
If fully subscribed, the intended Rights Issue will raise a maximum of $5.25 million (before costs) through the issue of up to 105,102,522 new shares and 105,102,522 new options.
Lucapa intends to use the funds raised from the intended Rights Issue to advance the search for the primary kimberlite sources of the high-value Lulo alluvial diamonds, preserve mining assets suspended as a result of the COVID-19 pandemic and for general working capital purposes.
The Company remains focussed on the health and wellbeing of staff, contractors and stakeholders through the implementation of suitable protocols to minimise the potential transmission of COVID19 and strict adherence to Government directives in Australia, Lesotho and Angola.
The exploration program at Lulo is at an important and exciting stage following the recovery of 45 diamonds in the Canguige tributary sample, including Dcolour and Type IIa gems.
The kimberlite exploration effort continues at Lulo and Lucapa looks forward to the upcoming dry season where activities can be scaled and to concluding the discussions with the Government of Angola in respect of a majority interest for Lucapa.
Lulo alluvial mining activities have been reduced to essential operations and a care and maintenance program is being implemented at Mothae in Lesotho.
This is to ensure the mining assets are preserved and well positioned to recommence mining operations when health protocols permit and the global markets recover.