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Lucapa Raises $3M for Lulo Mine, Postpones Rough Sale

Jul 27, 2015 10:05 AM   By Ronen Shnidman
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RAPAPORT... Lucapa Diamond Company, the explorer and developer of the Lulo diamond mine in Angola, announced that it had raised $2.9 million (AUD 4 million) to fund modifications to the alluvial mine plant.

Lucapa raised the funds via the placement of 22.2 million ordinary shares at an issue price of 13 cents (AUD 0.18) per share. The issue was led by mining company financier Far East Capital Limited, according to a statement filed with the Australian Stock Exchange (ASX). Investors in the share placement also received one unlisted option for every share purchased with a strike price of AUD 0.20 and an exercise date of September 30, 2017.

Management noted that Lucapa achieved its first positive net operating cash flow for the quarter that ended on June 30. This occurred despite the company’s decision to postpone the fifth sale of Lulo diamonds, which was scheduled to occur in June, to a later month due to weak rough diamond trading conditions.

Lucapa said that it currently holds 1,600 carats of rough diamonds in inventory and that it planned to conduct its fifth rough sale of the year in late August or early September.
Tags: Angola, Australia, lucapa, Lulo, Ronen Shnidman, rough prices
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