Lucapa Diamond has received applications for a $2.8 million share placement to advance the Lulo kimberlite exploration programme, in Angola as well as for general working capital and corporate purposes.
The placement, it said, involves the issue of 25,8 million new shares an issue price of $0.11 per share to sophisticated and professional investors.
The issue price represents a discount of approximately 13% to the volume weighted average price of Lucapa shares during the previous 30-day trading period.
The kimberlite exploration programme aims to discover the hard-rock primary source or sources of the high-value alluvial diamonds that Lucapa and its partners have been mining in the Cacuilo River valley for the past five years.
Lucapa previously funded the kimberlite exploration programme from its share of distributions and loan repayments from Lulo alluvial mining company, Sociedade Mineira Do Lulo.
SML has self-funded a $12 million expansion of the alluvial mining operations in 2019 and the first quarter of 2020, reducing its available free cash to also declare dividends during this period.