Advanced Search

Lucara Plans to Divest From Mothae Mine

Dec 23, 2014 3:12 AM   By Ronen Shnidman
Comment Comment Email Email Print Print Facebook Facebook Twitter Twitter Share Share
RAPAPORT... Lucara Diamond Corp. announced plans to sell its majority stake in the Mothae diamond mine project in Lesotho. While the project held diamonds, all development options for the site had failed to meet the company's investment criteria.  The current book-value of the project, along with rehabilitation provision costs, was close to $21 million, according to Lucara's estimates.

"Based on our development strategy and the extensive work conducted on understanding the economics of the Mothae asset, we do not believe that sufficient shareholder value can be gained through the expenditure of current cash reserves on further assessment and development of this project," said William Lamb, Lucara's president and CEO.

He added that the company will continue to focus on its Botswana production and exploration assets while looking for other opportunities to add value to its project portfolio.  Lucara's sole operating mine and revenue source is its Karowe mine in Botswana. The company was also awarded two prospecting licenses by the Botswana government in September, which have already been shown to contain diamondiferous kimberlites and are located less than 50 kilometers from the Karowe mine.

Lucara owns 75 percent of the Mothae project, with the remainder held by the government of Lesotho. Lucara said that the government indicated, in discussions with the company, that it was committed to support the project should any potential new owners express interest in it. 
Tags: Botswana, exploration, Karowe, large stones, Lesotho, lucara, Mothae, prospecting, Ronen Shnidman
Similar Articles
Debswana 1,098 ct. diamond June 2021De Beers Unit Finds 1,098ct. Diamond
Jun 17, 2021
Debswana, De Beers’ joint venture with the Botswana government, has discovered a 1,098-carat rough diamond, one
ACDC Ekati 140Covid-19 Outbreak Interferes with Ekati Operations
Jun 01, 2021
Regional health authorities for Canada’s Northwest Territories have declared a coronavirus outbreak at the Ekati mine,
Comments: (0)  Add comment Add Comment
Arrange Comments Last to First
© Copyright 1978-2021 by Rapaport USA Inc. All rights reserved. Index®, RapNet®, Rapaport®, PriceGrid™, Diamonds.Net™, and JNS®; are registered TradeMarks.
While the information presented is from sources we believe reliable, we do not guarantee the accuracy or validity of any information presented by Rapaport or the views expressed by users of our internet service.