Lucapa Diamond, Lephema Executive ink Sales and Purchase Agreement on Mothae Diamonds
Lucapa Diamond Company and Lephema Executive Transport have sealed a binding Sales and Purchase Agreement to divest its 70% stake in Mothae Diamonds, which owns the Mothae Diamond Mine in the Kingdom of Lesotho.
Lucapa’s Managing Director and CEO, Nick Selby confirmed the report and said the move is part of firm’s strategic review by Lucapa’s restructured board to focus on its core assets in Angola and Australia.
The CEO emphasized that the agreement results from extensive negotiations and that Lephema Executive Transport, having provided long-term contract mining services to the Mothae Diamond Mine, is well-positioned to continue its operations.
Sales and Purchase Agreement
Under the deal Lucapa will receive a nominal purchase price of A$10,000 from Executive. Lucapa will also receive approximately A$1 million from Mothae for outstanding technical services payments. Executive will assume all liabilities and guarantee obligations relating to Mothae currently held by Lucapa.
Lucapa will continue to provide technical services to Mothae under normal commercial terms for at least three months. Lucapa has confirmed that shareholder approval is not required under ASX Listing Rules 11.1 and 11.2, and thus, the Company will not seek shareholder approval for this transaction. The completion of the divestment is expected to occur on or before 30 September 2024, subject to the satisfaction of the outlined conditions.
Conditions precedent include; Consent from the Lesotho Minister of Natural Resources, Execution of a Delegation Agreement among Lucapa, the Government, and Executive, delegating Lucapa’s rights and obligations in the Mining Agreement to Executive, Confirmation from SAFDICO that the Offtake Agreement between Mothae and SAFDICO remains valid post-transaction and Amendment of the Technical Services Agreement to include a three-month no-fault cancellation provision.
