Lucapa Diamond Company, an Australian diamond miner, announced the signing of a conditional binding Sale and Purchase Agreement with a local Lesotho company, Lephema Executive Transport (Pty) Ltd, for a 70% ownership in Mothae Diamonds (Pty) Ltd., which controls the Mothae diamond mine in Lesotho. The disposal is part of Lucapa‘s strategic assessment, which will focus on key assets in Angola and Australia.
The Agreement, the result of negotiations with multiple parties, comprises a nominal purchase price of A$10,000 from Lephema and about A$1 million from Mothae for overdue technical services payments. Lephema will also assume all of Mothae’s present liabilities and guarantee commitments. Lucapa will continue to provide technical assistance to Mothae for at least three months following completion.
The acquisition, subject to regulatory clearances and other conditions, is expected to close on September 30, 2024. Lucapa confirmed that no shareholder approval is necessary for the deal.
Nick Selby, Lucapa’s Managing Director and CEO, stated, “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.”