Lucapa secures funding to boost exploration

Lucapa Diamond Company (ASX:LOM) has secured a $3 million funding package to accelerate exploration at the Merlin Diamond Project in Australia. The funding will also provide additional working capital. This package includes a placement and debt to equity conversion, with plans to issue 133.5 million new shares at A$0.02 each.

Comprehensive breakdown of Lucapa's funding announcement

Lucapa Diamond Company has announced a $3 million funding package through share placement and debt conversion. The company plans to issue 133.5 million shares at A$0.02 each. The funding will support the exploration program at the Merlin Diamond Project in Australia. The placement will occur in two tranches, with the second tranche subject to shareholder approval. Lucapa is also issuing 75 million unlisted options and converting A$329k of unpaid fees into equity. The funding will help Lucapa advance its exploration efforts and enhance its financial position. The company continues to focus on its assets in Angola and Australia, with significant exploration potential at the Merlin Diamond Project.

Executive insights on the funding package

The funds will accelerate exploration at the Merlin Diamond Project, an Australian mine in the Northern Territory. The electromagnetic (EM) survey has been completed, and the company intends to process and interpret the data to unlock the project's potential.