Govt pro­cess­ing Mothae sale’

Lesotho Times - - Business -

THE gov­ern­ment of Le­sotho is pro­cess­ing the $8.5-mil­lion (about M92.42 mil­lion) dis­posal of Mothae Diamond Mine by Lu­cara Di­a­monds to Paragon Di­a­monds.

This was said by Lu­cara COO Paul Day dur­ing the Botswana Re­source Sec­tor Con­fer­ence in Gaborone.

Si­t­u­ated on the south­ern edge of the Kaap­vaal Cra­ton, which hosts the di­a­mon­dif­er­ous north­ern Le­sotho kim­ber­lite field, Mothae Diamond Mine is a joint ven­ture be­tween the Cana­dian-listed Lu­cara Diamond Cor­po­ra­tion and the gov­ern­ment of Le­sotho.

Next to Gem Di­a­monds’ Let­seng mine, Mothae Diamond Mine has an in­di­cated re­source of one mil­lion carats and an in­ferred re­source val­u­a­tion of $1 bil­lion.

Lu­cara, which is listed on the TSX Ex­change, Nas­daq Stock­holm and the Botswana Stock Ex­change, holds a 75 per­cent stake in the mine with the gov­ern­ment of Le­sotho hold­ing the re­main­ing 25 per­cent. It also mines at Karowe in the Orapa diamond field in cen­tral Botswana.

Last month, Lu­cara signed a Mem­o­ran­dum of Un­der­stand­ing (MOU) with Paragon Di­a­monds to sell its 75 per­cent in­ter­est in Mothae Diamond Mine.

An Al­ter­na­tive In­vest­ment Mar­ket-listed diamond de­vel­op­ment com­pany, Paragon Di­a­monds was in­cor­po­rated in 2010. In May 2011, it com­pleted the ac­qui­si­tion of In­ter­na­tional Diamond Con­sul­tants, a pri­vately-owned group of com­pa­nies which held a prospect­ing li­cence over the Lem­phane Kim­ber­lite pro­ject in Le­sotho. The sub­se­quent ex­plo­ration pro­gramme re­sulted in the award of a min­ing lease for the Lem­phane Kim­ber­lite in March 2014.

Fol­low­ing the MOU, Paragon Di­a­monds re­leased a state­ment say­ing the ac­qui­si­tion was sub­ject to ap­proval from the gov­ern­ment of Le­sotho, a bind­ing share pur­chase agree­ment, fund­ing and other reg­u­la­tory ap­provals.

Read the state­ment: “Mothae rep­re­sents a low cost op­por­tu­nity for Paragon to gen­er­ate sig­nif­i­cant value for share­hold­ers through the re­cov­ery of ad­di­tional large high value di­a­monds in tan­dem with the com­mence­ment of Stage 1 pro­duc­tion at Paragon’s nearby Lem­phane Kim­ber­lite Pipe Pro­ject (‘Lem­phane’).

“As a re­sult of this ex­cit­ing ac­qui­si­tion, the com­pany be­lieves that it is wholly ap­pro­pri­ate to en­sure that both Lem­phane and Mothae are con­structed si­mul­ta­ne­ously and thus at the low­est pos­si­ble cost to ben­e­fit from economies of scale whilst ad­just­ing the timescale for com­mence­ment of pro­duc­tion of the en­larged as­set port­fo­lio to Q3 2015.”

Paragon Di­a­monds, which is ex­pected to make cash pay­ment upon the fi­nal­is­ing of the ac­qui­si­tion, plans to pol­ish a se­lec­tion of di­a­monds re­cov­ered from the Mothae as­set.

Lu­cara would re­ceive a pay­ment equal to five per­cent of the prof­its achieved from the sale of the pol­ished stones. Lu­cara would also re­ceive a pay­ment equal to five per­cent of the prof­its achieved from the sale of rough di­a­monds not se­lected for pol­ish­ing. — Staff Writer/en­gi­neer­ingnews.

Mothae is in the di­a­mon­dif­er­ous north­ern Le­sotho kim­ber­lite field.

Newspapers in English

Newspapers from Lesotho

© PressReader. All rights reserved.