Lucapa Diamond Company Limited (ASX: LOM) Secures $1M Loan Facility
Loan Facility Agreement
Lucapa Diamond Company Limited (ASX: LOM) has announced a secured loan facility agreement with New Azilian Pty Ltd. The facility totals A$1.0 million and is secured, reflecting strong support from major shareholder Mr Ross Stanley.
The proceeds from the loan will fund an airborne electromagnetic survey of the Merlin tenement area and support general working capital needs as the company awaits an SML dividend. The facility has standard commercial terms and is repayable in cash.
Geophysics Program Insights
Managing Director and CEO Alex Kidman emphasised the importance of the loan, stating, “The short-term facility allows the Company to conduct the planned geophysics program at the Merlin project which otherwise would have been delayed until after the upcoming wet season.” He noted that the survey will enhance understanding of the kimberlite and base metal potential, which past surveys may have overlooked.
Facility Details
The loan has a term of six months, carries an interest rate of 10% per annum, and requires security over shares and an intergroup loan linked to Lucapa’s subsidiary, Australian Natural Diamonds Pty Ltd. The agreement does not permit the conversion of the loan into shares of the company.
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