Lucapa Diamond Company has secured funding that will be used to start its next exploration program at the Brooking diamond project in the West Kimberley region of Western Australia.
The company revealed a significant diamond-bearing lamproite discovery at the 80 per cent-owned Brooking project in January.
Lucapa recovered 119 diamonds, including seven macro-diamonds of up to 1mm, from micro-diamond analysis of 86.8kg of core sample from one hole at the Little Spring Creek prospect.
To fund its planned exploration activities at Brooking, Lucapa has secured major investment backing from a new cornerstone investor and existing shareholders for a $16.5 million share placement, at no discount to the company’s market price.
The $16.5 million placement has been backed by firm commitments received from three major investors, who committed to invest $13 million at 23 cents a share. The investment was also strongly supported by an unnamed Perth-based investment fund.
In an ASX announcement, Lucapa stated that the placement enabled it “to launch an aggressive fully-funded drilling and exploration program at the Brooking diamond discovery without diluting the company’s 80 per cent interest in the project.”
“The funding package will enable Lucapa to immediately launch an extensive exploration program at the Brooking project to follow up on the spectacular Little Creek discovery.”
Brooking is within 50km of the Ellendale diamond mine, which once produced more than 50 per cent of the world’s fancy yellow diamonds. The remaining 20 per cent of the project is owned by Leopold Diamond Company.