West Australian-based international diamond miner Lucapa has taken up the search for yellow diamonds in the West Kimberley lamproite province in Western Australia with a Heads of Agreement (HoA) to acquire 80% of Leopold Diamond Co's Brooking Diamond Project.
It will pay $A140,000 cash (US$105,128) plus 250,000 fully-paid ordinary shares and 500,000 Lucara options exercisable at 53c (representing a 50% premium to the Lucapa share price at the time of signing the HoA). The Brooking Diamond Project comprises two exploration licenses covering 128 sq.km.
The exploration license covers an area located less than 40km from the famous Ellendale diamond field, formerly the world's leading producer of rare, fancy yellow diamonds - producing around half of them, including Tiffany's.
The move comes just over a year after Kimberley Diamonds walked away from its Ellendale mine, amid controversy, the arrest of former CEO of Kimberley Diamonds Alexandre Alexander, and legal disputes with the state.
Source: The Diamond Loupe