Lucapa to Sell Mothae Deposit Stake to Lephema Executive Transport

Lucapa Diamond Company has announced the sale of its 70% stake in the Mothae diamond deposit in Lesotho to Lephema Executive Transport, a local company that has provided long-term mining services at Mothae, for a nominal fee of AUD 10,000. 

Additionally, Mothae Diamonds, the site owner, will pay Lucapa AUD 1 million. Lephema will also assume all liabilities and obligations related to the deposit.

Following the completion of the agreement, expected by 30 September, Lucapa will provide technical services for Mothae for a minimum of three months. The deal does not require approval from the Australian Stock Exchange (ASX) or shareholders.

Continuation of Offtake Agreement

Lephema has committed to maintaining Lucapa’s existing offtake agreement with manufacturer Safdico. This agreement, established in 2020, ensures that 100% of Mothae’s rough diamonds are sold to Safdico.

Strategic Shift

Lucapa’s decision to offload Mothae aligns with its strategy to concentrate on its core assets in Angola and Australia. The Mothae mine, known for its high-value diamonds, including a 204-carat diamond in 2022 and a 215-carat rough diamond in 2021, commenced commercial production in 2019.

Remarks from Lucapa

Lucapa managing director Nick Selby commented on the sale: “This agreement is the result of a period of offer and negotiation involving Lucapa and several interested parties. [Lephema] has a successful history with the Mothae diamond mine, having provided long-term contract mining services. Lucapa wanted to, as far as possible, see this mine continue to operate, and [Lephema] is best placed to achieve this.”

Implications for the Industry

This transaction allows Lucapa to refocus resources on projects in Angola and Australia. For Lephema, the acquisition provides an opportunity to deepen its involvement in the Mothae mine’s operations, leveraging its local expertise.

Jewellers can expect continuity in the supply of rough diamonds from Mothae through the existing offtake agreement with Safdico. This stability is important for manufacturers relying on consistent access to quality rough diamonds, ensuring minimal disruption in the supply chain.