Lucapa Diamond Company Limited (ASX: LOM) (“Lucapa” or “the Company”) is pleased to announce the Company has received applications for a $2.8 million share placement to advance the Lulo kimberlite exploration program and for general working capital and corporate purposes.
• Strong support from sophisticated and professional investors for $2.8 million share placement
• 1 for 14 rights issue giving eligible shareholders the opportunity to subscribe for up to $3.9 million in new shares
• Directors intend to take up their full entitlements under the rights issue
• Proceeds to advance the search for the primary kimberlite sources of the high-value Lulo alluvial diamonds following recent highly-encouraging results and for general working capital and corporate purposes
The placement involves the issue of 25,899,916 new shares an issue price of $0.11 per share to sophisticated and professional investors qualifying under s708 of the Corporations Act 2001 (Cth). The issue price represents a discount of approximately 13% to the volume weighted average price (“VWAP”) of Lucapa shares during the previous 30-day trading period.
The placement will not require shareholder approval as the shares will be placed within Lucapa’s existing LR7.1 placement capacity.
Far East Capital Limited acted as lead manager to the placement.
Lucapa will also undertake a non-renounceable pro-rata rights issue to eligible shareholders which, if fully subscribed, will raise a maximum of $3.9 million (before costs) through the issue of up to 35,651,602 new shares.
Eligible shareholders registered on 5pm WST on 9 March 2020 (“Record Date”) will be entitled to subscribe for 1 new share for every 14 shares held as at the Record Date at an issue price of $0.11 per share.
The Directors of Lucapa intend to take up their full entitlements under the rights issue.
Lucapa shares will be quoted on an ex-entitlement basis from 6 March 2020. Therefore, any of the Company’s shares bought on-market on or after this date will not be entitled to participate in the rights issue.
It is currently intended that the $2.8 million placement will complete after the Record Date, so participants in the placement will not be eligible to participate in the rights issue.
The lead manager of the rights issue is Far East Capital Limited.
Eligible shareholders are those shareholders of the Company who are registered as shareholders on the Record Date with registered addresses in Australia, New Zealand, United Kingdom, Singapore, Hong Kong or Germany.
In addition to being able to apply for new shares under the rights issue, eligible shareholders will also have the opportunity to apply for additional new shares over their entitlement that are not subscribed for under the rights issue.
The rights issue is being undertaken without a prospectus in accordance with section 708AA of the Corporations Act 2001 (Cth).
The indicative timetable for the rights issue is set out in Appendix 1.
Full details of the rights issue will be contained in the Offer Document to be dispatched to eligible shareholders in accordance with the timetable set out in Appendix 1 together with the entitlement and acceptance form. From today, the Offer Document, with full details of the rights issue, will be available to download on both the ASX website (www.asx.com.au) and the Company’s website (www.lucapa.com.au).
Use of Funds
Lucapa intends to use the funds from the placement and rights issue to advance the Lulo kimberlite exploration program and for general working capital and corporate purposes.
The kimberlite exploration program aims to discover the hard-rock primary source or sources of the high-value alluvial diamonds Lucapa and its partners have been mining in the Cacuilo River valley for the past five years. This follows recent highly-encouraging results which are set out in the separate announcement previously released to the ASX today by Lucapa.
In recent years, Lucapa has primarily funded the kimberlite exploration program from the Company’s share of distributions and loan repayments from Lulo alluvial mining company, Sociedade Mineira Do Lulo (“SML”). Throughout 2019 and Q1 2020, SML has, as previously announced, self-funded a US$12 million expansion of the alluvial mining operations, reducing its available free cash to also declare dividends during this period. This expansion, primarily involving the purchase of new mining fleet, is designed to deliver a 50% increase in carat production in 2020.
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Für weitere Informationen besuchen Sie bitte die Unternehmens-Webseiten www.lucapa.com.au, oder wenden sich an:
Tel. +61-8-9381 5995
Im deutschsprachigen Raum:
73728 Esslingen am Neckar
Tel. +49-711-82 09 72 11
Fax +49-711-82 09 72 15
Source: Company websites