Lucapa Diamond Company (ASX:LOM) raises $10M to expand Mothae

• Diamond producer Lucapa Diamond Company (LOM) has raised $10 million to expand its Mothae kimberlite mine
• The company will issue nearly 182 million shares for 5.5 cents per share to professional and sophisticated investors
• Lucapa is expanding its processing capacity at Mothae from 1.1 million tonnes per annum to 1.6 million tonnes per annum, a 45 per cent improvement
• The upgrade is expected to cost the diamond producers $8.5 million
• On the market this morning, Lucapa remains in the grey and last traded for 5.9 cents per share

Lucapa Diamond Company (LOM) has raised $10 million to expand its Mothae kimberlite mine.

The company will issue nearly 182 million shares for 5.5 cents per share to professional and sophisticated investors. The placement also involves the issue of nearly 55 million unlisted options for 8 cents each, expiring two years from the date of issue.

The raise was oversubscribed and was cornerstoned by Illwella and Safdico International.

Lucapa is expanding its processing capacity at Mothae from 1.1 million tonnes per annum to 1.6 million tonnes per annum, a 45 per cent improvement. This is expected to increase production, revenues and improve unit operating costs.

The upgrade is expected to cost the diamond producers $8.5 million, which will be covered by the capital raise.

The Mothae kimberlite mine contains large and high-quality diamonds. In 2019, the mine recovered three over 100-carat diamonds.

“With the completion of this Mothae expansion, Lucapa will have successfully delivered on its group production growth target of 200 per cent,” Managing Director Stephen Wetherall said.

“Lucapa looks forward to the returns expected to be generated from both expanded mining operations and growing shareholder value through cash flow generation and the kimberlite exploration program,” he added.

On the market this morning, Lucapa remains in the grey and last traded for 5.9 cents per share at 11:04 am AEDT.