Lucapa Diamond has extended the closing date for its rights issue from March 20 to March 30 due to the ongoing volatile market conditions.
The company undertook a non-renounceable pro-rata rights issue early this month to eligible shareholders on the basis of 1 new share for every 14 shares held at an issue price of $0.11 per share to raise up to $2.8 million.
Lucapa intends to use funds raised from the Rights Issue to advance the Lulo kimberlite exploration programme, in Angola and for general working capital and corporate purposes.
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.
Image credit: Lucapa Diamond