- Lucapa Diamond Company (LOM) has entered two consecutive back-to-back trading halts for an upcoming capital raise
- The company will remain in the halts until November 6 or when the announcement is made, whichever occurs first
- As of September 30, Lucapa had US$1.48 million (around A$2.11 million) left in funding, representing less than one quarter of cash to support operations
- However, Lucapa has initiated a number of funding alternatives and believes funding will be successfully secured
- The company has stated it will use the funds from the capital raise to advance the expansion plans at the Mothae Project in Lesotho, Africa
- Shares in Lucapa last traded for 5.9 cents on October 30
Lucapa Diamond Company (LOM) has entered two consecutive back-to-back trading halts for an upcoming capital raise.
The company will remain in the halts until November 6 or when the announcement is made, whichever occurs first.
In its September quarterly report, Lucapa revealed it had burnt US$1.7 million (roughly A$2.4 million), with the majority going towards production and staff costs.
As of September 30, the company had US$1.48 million (around A$2.11 million) left in funding, representing less than one quarter of cash available if current spending levels stay the same.
However, Lucapa has initiated a number of funding alternatives and believes funding will be successfully secured.
Lucapa stated it will use the funds from the capital raise to advance the expansion plans at the Mothae Project in Lesotho, Africa.
It lies within the diamond-rich Maluti Mountains which are situated five kilometres from Letseng, the world’s highest US$ per carat kimberlite and diamond mine.
Lucapa recently resumed operations at Mothae after operations were impacted in mid-March due to the COVID-19 pandemic.
However, operations will be scaled back to 75 per cent to comply with health and safety measures.
Shares in Lucapa last traded for 5.9 cents on October 30.