Lucapa Diamond Company has signed a new refinancing agreement that will allow it to reduce its debts and further develop its Mothae mine in Lesotho.
New Azilian will give the miner a one-year loan of $7 million, some of which it will put toward repaying a loan to Equigold ahead of schedule. That loan was taken out in 2017.
Lucapa will also use the funds from New Azilian as working capital, providing it with more flexibility in scheduling future diamond tenders, it said Thursday. This will help the miner maximize its revenues from those sales, it added.
“These new refinancing arrangements will provide Lucapa with added financial strength to continue to build our strategic position in this niche high-value diamond sector,” said Lucapa CEO Stephen Wetherall.
The agreement follows the recovery of a high-quality diamond from Mothae weighing 55 carats, the fifth of that magnitude the new deposit has yielded. The next tender of rough stones from Mothae is scheduled for the second quarter. The mine began commercial production in January.
Lucapa also owns the Lulo mine in Angola, known for its large, high-quality stones.
Image: The 55-carat stone retrieved from the Mothae mine. (Lucapa Diamond Company)