Join our daily newsletter At The Bell to receive exclusive market insights
- Lucapa Diamond Company (LOM) places its shares in a trading halt in regards to an upcoming capital raising
- The company will remain in the halt until March 8 or when further details regarding the raise are released, whichever occurs first
- Yesterday, Lucapa released an updated scoping study for its Merlin Diamond Project in the Northern Territory
- The production target stands at 2.1 million carats with a life-of-mine of 14 years and 14 million tonnes treated
- Shares in Lucapa last traded at eight cents on March 3
Lucapa Diamond Company (LOM) has placed its shares in a trading halt in regards to an upcoming capital raising.
The company will remain in the halt until March 8 or when further details regarding the raise are released, whichever occurs first.
Lucapa is yet to disclose how much it intends to raise or what it will use the funds for once received.
Yesterday, Lucapa released an updated scoping study for its Merlin Diamond Project in the Northern Territory.
The production target stands at 2.1 million carats with a life-of-mine of 14 years and 14 million tonnes treated.
Additionally, the rising diamond prices prompted Lucapa to update the rough diamond price estimates with current revenue of around $2.3 billion.
Lucapa last tapped investors for cash in May 2021 when it completed a $23 million capital raising to purchase the Merlin Project.
The funds were raised via a $20 million placement and $3 million share purchase plan (SPP).
Under the placement, around 400 million shares were issued to institutional and professional investors at five cents.
Directors, Miles Kennedy, Ross Stanley, Nick Selby and Stephen Wetherall agreed to subscribe for $800,000.
Lucapa then undertook the SPP which allowed eligible shareholders the ability to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.
Shares in Lucapa last traded at eight cents on March 3. The company has a $101.8 million market cap.
