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Lucapa Seals Deal to Defer Loan Repayments
Aug 16, 2020 8:13 AM
By Rapaport News
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RAPAPORT... Lucapa Diamond Company, owner of the Lulo mine in Angola and Mothae in Lesotho, has restructured its debt, allowing it more freedom to focus on navigating the weak diamond market.
“The refinancing arrangements will give Lucapa and Mothae more flexibility to navigate the pandemic-affected diamond and investor markets, and the support to continue driving the company’s strategy on its niche high-end operations and exciting exploration projects,” said managing director Stephen Wetherall.
The deal enables Lucapa to defer $13 million worth of loan payments that were due by the end of next year to 2022. Its lenders include Equigold and New Azilian, and the Industrial Development Corporation of South Africa, which provides support for Mothae.
Meanwhile, the company has begun processing bulk samples of ore from kimberlites surrounding the Lulo alluvial operation, as it continues to pursue the “mother lode” source of the mine’s diamonds. Mothae remains on care and maintenance until market conditions and rough prices improve, Wetherall told Rapaport News.
Image: A parcel of rough diamonds from the Lulo mine. (Lucapa)
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Tags:
Angola, diamonds, Lesotho, lucapa, Lulo, Mothae, Rapaport News
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