Lucapa Diamond Company

Dubai’s Jemora Group Acquires Lucapa Diamond Company and Its Global Mining Interests

Dubai, UAE – Gaston International, part of Dubai’s Jemora Group, has finalised an agreement to acquire Lucapa Diamond Company Ltd., securing control of its mining and exploration assets across Angola and Australia. The deal, valued at approximately USD $10 million, marks a significant shift in ownership for one of the sector’s most recognised niche producers of large, high-value diamonds.

Lucapa, previously listed on the ASX, entered voluntary administration in May 2025. Administrators Richard Tucker and Paul Pracilio of KordaMentha Restructuring oversaw the sale process after assessing the company’s financial position and operational assets.

Strategic Assets in Angola and Lesotho

Lucapa’s flagship holding is its 40% stake in the Lulo alluvial diamond mine in Angola, widely regarded as the highest dollar-per-carat mine in the world, achieving an average of USD $2,806 per carat in 2021. The balance of ownership is held by Angola’s state-owned Endiama and private partner Rosas & Petalas.

Since mining began in 2015, Lulo has yielded an extraordinary run of large and rare stones, including 48 Type IIa diamonds exceeding 100 carats. Among them are Angola’s largest ever recorded diamond—the 404-carat “4 de Fevereiro”—and the 170-carat “Lulo Rose”, a rare pink diamond discovered in 2022. Current estimates suggest Lulo still contains 249,000 carats of recoverable diamonds.

Supporting this production are two modern processing plants capable of handling 600,000 cubic metres of gravel annually, equipped with advanced recovery technology specifically designed to maximise recovery of large diamonds.

In addition, Lucapa retains a 39% interest in the Lulo Kimberlite Exploration Project, with Endiama (51%) and Rosas & Petalas (10%). More than 100 kimberlite pipes have been identified within the concession, several containing Type IIa diamonds—strongly suggesting the primary source of Lulo’s exceptional large stones lies within this exploration area.

Lucapa had previously held a majority stake in the Mothae mine in Lesotho, but divested its interest in 2024 as part of a portfolio streamlining initiative.

Expansion into Australia

The acquisition also includes Lucapa’s Australian assets, headlined by the Merlin Diamond Mine in the Northern Territory. Merlin is renowned for producing Australia’s largest diamond and is notable for its gem-quality output—historically, 75% of its recovered diamonds have been classified as gem or near-gem quality, including rare coloured diamonds in yellow, pink, and blue hues.

In addition, Gaston inherits Lucapa’s 80% interest in the Brooking Diamond Project in Western Australia, a promising package of exploration tenements, as well as a base metals project tied to Merlin.

Gaston’s Strategic Outlook

Gaston International stated it intends to work closely with Lucapa’s existing partners and management to maximise the long-term value of these assets. The company views both the operational production at Lulo and the exploration potential of its kimberlite concessions as major growth drivers.

The transaction remains subject to regulatory and court approvals, as well as creditor consent, before share transfers can be completed.

With this acquisition, Jemora Group expands its footprint in the natural diamond sector, positioning itself among the few entities with a diversified portfolio spanning Africa’s premier diamond deposits and Australia’s most significant gem-quality mine.

Administration-led DOCA offers lifeline to Lucapa

Lucapa Diamond Company, the Perth-based miner behind the Lulo alluvial mine in Angola and the Merlin project in Australia, has secured a potential lifeline through a planned Deed of Company Arrangement (DOCA) that promises full repayment to creditors and a partial return to shareholders.

Administrators Richard Tucker and Paul Pracilio of KordaMentha were appointed in May after Lucapa faced plummeting diamond markets and operational strains. They recently reached a binding term sheet with Dubai-based Gaston International, part of the broader Jemora Group, setting the stage for a restructuring that would transfer Lucapa’s shares to the proponent, subject to creditor and court approvals.

Under the proposed DOCA, creditors stand to receive 100c on the dollar, while shareholders may receive up to A$0.018 a share. That potential payout exceeds Lucapa’s last traded share price of around A$0.014 a share.

The company has struggled amid a downturn in diamond prices.

Gaston International invests heavily in mining globally, with a particular affinity for critical minerals and gemstones. Its interest in Lucapa could give the company access to high-value assets while securing its Angolan and Australian operations.

KordaMentha’s dual-track recapitalisation and sale process hinges on creditor approval at meetings scheduled for August 20, court clearance under a key provision of the Australian Corporations Act, and any regulatory consents. If successful, the DOCA would preserve Lucapa’s operations and deliver better outcomes than liquidation, the administrators stated.

Source: Miningweekly

Lucapa Diamond Company Enters Voluntary Administration Amid Market Pressures

Lucapa Diamond Company has entered voluntary administration following a major cost-cutting initiative and a significant reduction in its corporate workforce. The decision comes in the wake of mounting financial pressure and weakening global diamond demand, attributed in part to US President Donald Trump’s trade tariffs, which have disrupted pricing and buyer confidence.

KordaMentha Appointed as Administrators

Leading corporate recovery firm KordaMentha Restructuring has been appointed to oversee Lucapa’s administration, with Richard Tucker and Paul Pracilio named as voluntary administrators. Their immediate focus is an urgent operational and financial assessment of Lucapa, followed by a dual-track recapitalisation and potential sale process.

Lucapa’s Key Assets: Lulo and Merlin Projects

Lucapa holds a 40% interest in the high-value Lulo alluvial diamond mine in Angola. The site is known for producing large, premium-quality Type IIa diamonds, including stones exceeding 100 carats.

In Australia, Lucapa’s flagship asset is the Merlin Diamond Project in the Northern Territory. The project includes a 24 km² mining lease and a 210 km² exploration licence. Historically, eight of the 11 known kimberlite pipes at Merlin were mined by Rio Tinto (ASX: RIO) and Ashton Mining between 1999 and 2003, yielding approximately 500,000 carats from 2.2 million tonnes of processed kimberlite.

Financial Challenges in Q1 2025

Lucapa’s March quarter report highlights a sharp downturn in financial performance. Diamond inventories dropped 44% to 1,685 carats, and cash and receivables fell 41% to $2 million. Additionally, the company took on $600,000 in interest-bearing debt during the period. In response, Lucapa implemented a thorough review of its corporate expenditure, resulting in reduced overheads and workforce downsizing.

The company noted that the full impact of US trade tariffs on diamond sales has yet to be determined. However, uncertainty among buyers throughout April has led to softened demand and reduced prices across the industry.

Path Forward Through DOCA

Despite the challenges, there is optimism that Lucapa may recover through a Deed of Company Arrangement (DOCA). KordaMentha’s Richard Tucker previously stated that approximately 99% of mining companies the firm assists successfully emerge from administration via DOCA, which aims to preserve operations and secure better outcomes for creditors than liquidation.

Lucapa Diamond Company’s move into administration reflects broader challenges in the diamond sector, including geopolitical trade tensions and market uncertainty. The success of the upcoming recapitalisation or sale process, under the guidance of KordaMentha, will be critical in determining the company’s future and protecting the value of its premium diamond assets.

Lucapa Diamond Secures Majority Stake in Lulo JV, Strengthening Its Position in Angola

Lucapa Diamond Company, an ASX-listed diamond miner, has finalised its mineral investment contract (MIC) for the Lulo joint venture (JV) in Angola, increasing its stake from 39% to a controlling 51%. The contract now awaits formal approval from Angola’s Ministry of Mineral Resources and Petroleum.

The Lulo JV is focused on kimberlite exploration at the highly prospective Lulo concession. This latest agreement, reached after a three-day negotiation in Angola, was finalised with JV partners Endiama, Rosas & Petalas, and Lucapa, marking a significant milestone for the company.

Lucapa’s managing director and CEO, Alex Kidman, highlighted the strategic importance of securing a majority stake, stating that this move enhances Lucapa’s share of any future exploration success. He also emphasized Angola’s commitment to the project, recognizing Lulo as one of the country’s most significant diamond ventures.

Meanwhile, bulk sampling operations continue at Lulo, with stockpiling from site L130/01 already underway. Further sampling is planned at key targets, including L349, L137, and L130, as the company intensifies its search for Lulo’s exceptional diamonds.

Lucapa Diamond to restart halted Merlin mine

Lucapa Diamond has announced plans to restart production at its mothballed Merlin diamond mine in Australia’s Northern Territory.

The phased approach will begin with an 18-month initial phase, requiring A$15 million ($10m) to excavate and dredge five existing pits. This work is expected to recover around 67,000 carats and generate an estimated A$42 ($27m) million in revenue.

The second phase, spanning 27 months, will focus on vertical pit mining at the Gawain pit, targeting the recovery of 247,000 carats and generating A$246 million ($160m) in revenue. The overall project is expected to yield operating cash flow of $110 million, with a pre-tax net present value of A$40 million ($26m)and an internal rate of return of 75%.

Lucapa anticipates recovering gem and near-gem quality diamonds, which historically accounted for 75% of the mine’s production.

Questions remain about how Lucapa will fund its plans, as the company began the quarter with just US$1.3 million in cash. To address this, Lucapa has entered into a A$1 million short-term loan and is also exploring other funding options such offtake agreements, project-level debt, equity, and government facilities.

Smaller, more achievable target
Lucapa, which also has interests in the Lulo diamond operations in Angola and the Mothae mine in Lesotho, acquired Merlin in 2021 for A$8.5 million.

The restart plan follows a 2022 scoping study that proposed a larger $96 million restart, which was halted due to rising capital costs and declining diamond prices.

The new plan includes constructing a 355,000tpa process plant using existing equipment at Merlin, with a proposed five-year mine life aimed at expanding operations into the 2030s.

Lucapa aims to grow the diamond resource beyond the current estimate of 4.4 million carats while also exploring the region for base metals, given its proximity to the McArthur River lead-zinc-silver mine.

Sorce: mining.com

Diamond miners results spark optimism for market recovery

Lucapa Diamond and Petra Diamonds provided a glimmer of hope for the precious gemstones market on Tuesday by posting stronger revenues and production figures, signalling a potential recovery in the depressed diamond market.

Australia’s Lucapa achieved third-quarter revenue of $16.9 million, an 86% year-on-year increase, driven mainly by the sale of high-quality diamonds, averaging $3,033 per carat.

This growth was also attributed to the company’s access to higher-grade mining blocks, a result of strategic river diversions aimed at mitigating the impact of flooding at the Lulo operation in Angola.

Nick Selby, Lucapa’s managing director, expressed optimism about the future, especially with the access gained to the higher-grade Lazaria gravel, historically known for producing large, high-value diamonds.

“We are aiming for a strong finish to the year,” Selby said, noting that the company sold a 176-carat diamond for $3 million, further boosting results.

Africa-focused Petra Diamonds also reported promising figures, with production rising by 7% to 679,625 carats for the quarter ended September 30. The increase was driven by higher grades at the company’s flagship Cullinan mine in South Africa and its Williamson mine in Tanzania.

Petra’s chief executive officer, Richard Duffy, attributed this growth to “solid performances” from these mines, despite weaker market conditions.

To counteract the softness in the rough diamond market, Petra deferred in August the sale of a significant portion of its South African diamonds. Its combined first and second tenders, however, indicated a 13% increase in overall average prices, thanks to an improved product mix, which included a standout 18.85-carat blue diamond from Cullinan that fetched $8.5 million.

Despite ongoing challenges in the global diamond market, both Lucapa and Petra’s results reflect resilience and strategic adjustments, injecting cautious optimism into a sector eager for recovery.

As both companies continue to leverage high-value diamonds and strategic planning, industry observers remain hopeful for sustained market improvements heading into the end of the year holidays, which tend to help boost diamond sales.

Source: Mining.com

Lucapa concludes special tender worth $12m

Lucapa Diamond Company has sold six diamonds recovered from the Lulo mine, in Angola, in a special tender for $12.4-million.

The diamonds totalled 447 ct and consisted of five white Type IIa diamonds, as well as a pink diamond.

The average price per carat was about $27 700.

MD and CEO Nick Selby deems the tender result pleasing. “Our alluvial project, in Angola, continues to deliver fantastic diamonds that are always in demand through all market cycles and achieve very competitive values.”

Source: miningweekly.com

Lucapa Offloads Mothae Diamond Mine

Lucapa today (25 June) announced the sale of its 70 per cent stake in the Mothae mine, in Lesotho, to a local contractor for a nominal sum.

The Australian miner said it wanted to to focus on its core assets in Africa, where it has a 40 per cent stake in the Lulo alluvial mine, in Angola, and in Australia.

Mothae has produced over 150,000 carats since it started commercial production in 2019, bringing in more than $100m in revenue.

Lucapa says it will sell its stake in stake in Mothae Diamonds (Pty) Ltd to Lephema Executive Transport (Pty) Ltd, which has provided it with long-term contract mining services, for A$10,000 (US$6,660).

Mothae Diamonds, which owns the site, will pay Lucapa A$1m (US$666,000) in outstanding technical services payments.

“This agreement is the result of a period of offer and negotiation involving Lucapa and several interested parties,” said Lucapa managing director and CEO Nick Selby.

“(Lephema) Executive 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 Executive are best placed to achieve this.

“The signing of this agreement is a key step towards Lucapa streamlining its portfolio and executing the new strategy which will focus on assets in Australia and Angola”.

Mothae has indicated resources of 180,000 carats and inferred resources of 960,000 carats, according to December 2023 figures provided by Lucapa, with a modelled per carat value of $606.

Lucapa said in its sales material that Mothae has recovered 13 +100ct diamonds (largest Type IIa gem 213cts), and 10 diamonds valued at over $1m.

Source: IDEX

Lucapa recovers 195 carat diamond from Lulo mine

Lucapa Diamond announced Tuesday that together with its Lulo alluvial mine partners, Endiama and Rosas & Petalas, the company has recovered a 195 carat Type IIa diamond from its Lulo mine in Angola.

The diamond is the sixth largest and the 44th +100 carat diamond to be recovered from the Lulo mine, the company said, adding that the 195 carat Type IIa diamond is the fourth +100 diamond to be recovered at Lulo this year.

The mine, which hosts the world’s highest dollar-per-carat alluvial diamonds, began commercial production in January 2015. Only a year later, it delivered the largest ever diamond recovered in Angola a 404 carat white stone later named the “4th February Stone”.

Lucapa has a 40% stake in the Lulo mine. The rest is held by Angola’s national diamond company (Endiama) and Rosas & Petalas, a private entity.

Angola is the world’s fifth diamond producer by value and sixth by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully being liberalized.

Source: Mining.com

Lucapa sells three diamonds for $10.5m in first tender

*A 203 ct Type IIa diamond as part of Lucapa’s first Lulo tender of the year*

Lucapa Diamond Company has sold three exceptional diamonds recovered from the Lulo mine, in Angola, for $10.5-million at tender.

The tender was concluded on April 19 and was conducted by Sodiam, in Luanda.

The three Type IIa white diamonds, weighing 203 ct, 116 ct and 43 ct, made up Lucapa’s first tender of Lulo diamonds for this year.

The total parcel, weighing 361 ct, realised an average price of $29 000/ct.

Lucapa has a 40% interest in the Lulo alluvial mine, alongside Angola’s national diamond company Endiama and a private entity called Rosas & Petalas.

Source: miningweekly