Lucapa Diamond has secured a $15 million debt financing facility to bring its “high-value” Mothae kimberlite diamond project, in Lesotho into production in 2018.
Company managing director Stephen Wetherall said the financing facility enabled Lucapa to meet one of its key strategic objectives of growing diamond production in the large and “premium-value sector” – a segment of the global market where sales and pricing had remained strong.
“This facility is a significant result for Lucapa and its shareholders. It ensures that 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,” he said.
The three-year debt facility was arranged with a private Singaporean company, Equigold and it would be repaid in eight quarterly payments commencing December 2018 when Lucapa expects Mothae to be in steady state production under its first phase development plan.
It also carried an annual interest rate of 13 percent and other fees customary to a facility of this nature.
The facility includes a provision for Equigold, at their election, to convert the last two scheduled quarterly payments, totalling $3.75 million, into ordinary shares in Lucapa.