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Lucapa to Sell 70% Stake in Lesotho Diamond Mine

Lucapa Diamond Company has announced plans to sell its 70% stake in the Mothae diamond mine, located in the diamond-rich Maluti Mountains of Lesotho. This decision follows a strategic review by Lucapa’s newly restructured board of directors.

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Discussions are currently underway with the Government of Lesotho, which holds the remaining 30% interest in the mine, to explore divestment options.

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Commissioned in 2019, the Mothae mine is an open-cast operation known for producing large, high-value diamonds. In preparation for the sale, Lucapa is finalizing a data room for interested parties.

Lucapa chairman Stuart Brown stated, “On review, it is clear the company should streamline the portfolio to focus on our core assets in Africa and Australia. The collaboration with the Lesotho Government on the Mothae Diamond Mine has been rewarding, and our management has optimized the plant to recover large diamonds. We expect significant interest from the diamond industry and beyond.”

The Mothae mine, with a lifespan of over 20 years, was placed on care and maintenance in late March 2020 due to the COVID-19 lockdown but resumed operations at 75% capacity in October 2020.

Lucapa, which is also exploring for diamonds in Australia, Angola, and Botswana, is conducting a feasibility study for the development of the Merlin Diamond Project in the Northern Territory of Australia. Australian Natural Diamonds, a unit of Lucapa, acquired the Merlin project in 2021.

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