Lucapa Diamond Increases Stake to 51% in Lulo Joint Venture in Angola

Lucapa Diamond Company has finalized its mineral investment contract, increasing its ownership stake in the Lulo joint venture in Angola to 51%. The move secures a greater share of potential exploration success and underlines Angola’s commitment to the project. Currently, Kimberlite sampling is active, with preparations underway for additional sites.

Lucapa Diamond Company, listed on the Australian Securities Exchange, has successfully finalized its mineral investment contract for the Lulo joint venture (JV) in Angola, increasing its ownership stake to 51%. This confirmation of the contract is currently awaiting formal signature from the Angolan Ministry of Mineral Resources and Petroleum.

The Lulo JV is dedicated to exploring kimberlites at the prominent Lulo concession, and the approved MIC enhances Lucapa’s interest from 39% to a majority position of 51%. This development followed a comprehensive three-day meeting among the MIC Committee and JV partners, which includes Endiama, Rosas & Petalas, and Lucapa, facilitating the agreement on all necessary details.

Alex Kidman, Lucapa’s managing director and CEO, emphasized the significance of obtaining a majority stake, stating that it enhances their potential share of exploration success. He noted, “Securing a majority stake of the Lulo exploration JV is a pivotal outcome for Lucapa because it will deliver us an increased share of any exploration success and the finalisation of the new MIC is something a number of our shareholders have been awaiting for a long time.”

The current operations at the Lulo concession include an ongoing Kimberlite bulk sampling programme, which has commenced stockpiling samples from site L130/01. Additionally, the programme is set to process samples from other promising locations including L349, L137, and L130. Looking forward, in May 2024, Lucapa Diamond announced intentions to divest a 70% stake in the Mothae diamond mine located in Lesotho.

In conclusion, Lucapa Diamond Company’s finalization of the mineral investment contract to secure a 51% ownership in the Lulo joint venture marks a significant milestone for the firm. This advancement not only indicates increased confidence in the project but also underscores the collaborative spirit among the partners involved. The ongoing exploration and sampling efforts at the Lulo concession continue to highlight its potential as a prominent diamond source.

Original Source: www.mining-technology.com