Australia-based Lucapa Diamond Company has unveiled its plans to sell its 70% stake in the Mothae diamond mine, located in the diamond-rich Maluti Mountain range in Lesotho.
Mothae is an open-cast mine that began commercial operations in 2019, following the commissioning of the 1.1 million ton per annum (mtpa) kimberlite processing plant.
The mine produces large, high-value diamonds with the second-highest dollar per carat price for diamonds.
Its processing plant is equipped with an X-ray transmission (XRT) recovery facility and a treatment facility that currently undergoing upgrades to enhance the throughput capacity.
The announcement follows a review of the asset portfolio by its newly restructured board of directors.
Furthermore, the diamond company is also discussing the options with the Government of the Kingdom of Lesotho, which owns the remaining 30% stake in the diamond mine.
Lucapa chairman Stuart Brown said: “On review, it is clear the Company should streamline the portfolio to focus on our core assets in Africa and Australia.
“The Company’s collaboration with the Lesotho Government on the Mothae Diamond Mine has been rewarding and our management have worked exceptionally well to optimise the plant to recover large diamonds.
“We expect there will be significant interest from those within the diamond industry and on a wider scale.”
In 2021, Lucapa Diamond agreed to acquire the historic Merlin diamond project in Australia from Merlin Operations, a subsidiary of Merlin Diamonds, for AUD8.5m ($6.6m) in cash.
The acquisition includes the Merlin diamond project, which comprises MLN 1154, a 24km2 mining lease and a 283km2 exploration tenement, along with associated equipment and assets.
The diamond project, which was previously mined by Rio Tinto and Ashton Diamonds between 1999 and 2003, represents a near-term development opportunity for Lucapa in Australia.
