Lucapa Raises $3.6M for Lulo Kimberlite Hunt

RAPAPORT... Lucapa Diamond Company has completed a rights issue that successfully raised AUD 5.25 million ($3.6 million) to fund its search for the kimberlite source of its high-value alluvial stones.The proceeds will help the miner excavate and process the first kimberlite samples from the Lulo area in Angola, where the company's alluvial mine has produced several large diamonds in recent years. Lucapa will also use the money to preserve the mining assets it suspended because of the Covid-19 pandemic, as well as for other company expenses, it said Wednesday.Lucapa offered investors an extra share for every five they already owned, pricing each new share at AUD 0.05 ($0.03)."During such unprecedented times, we were both delighted and appreciative to see such a strong show of support for our plans and strategies in the diamond sector, resulting in the maximum amount of [AUD] 5.25 million being raised," said Lucapa managing director Stephen Wetherall.Image: The Lulo alluvial mine. (Lucapa Diamond Company)