Lucapa Diamond Company Limited announces it has entered into a conditional binding Sales and Purchase Agreement with local Lesotho Company, Lephema Executive Transport (Pty) Ltd, to divest its 70% stake in Mothae Diamonds (Pty) Ltd which owns the Mothae Diamond Mine in the Kingdom of Lesotho.
The Agreement follows a strategic review of the Company’s portfolio of assets undertaken by the newly restructured board of directors. The divestment of the stake in the non-core asset enables the Company to focus on developing its Angolan and Australian assets.
Lucapa Managing Director and CEO Nick Selby commented on the divestment,” This agreement is the result of a period of offer and negotiation involving Lucapa and several interested parties. Executive has a successful history with the Mothae Diamond Mine, having provided long-term contract mining services.
Lucapa wanted to, as far as possible, see this mine continue to operate and Executive are best placed to achieve this. The signing of this agreement is a key step towards Lucapa streamlining its portfolio and executing the new strategy which will focus on assets in Australia and Angola”.
Under the Agreement, Lucapa will receive a nominal purchase price of A$10,000 from Executive as well as approximately A$1 million from Mothae in outstanding technical services payments. Executive will assume all liabilities and guarantee obligations relating to Mothae currently held by Lucapa.
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