Lucara gets Mothae diamond mining lease

by eyetee | November 2, 2009 12:00 am

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Vancouver-based Lucara Diamond Corp., has been granted a 10-year diamond mining lease for the Mothae project in the African nation of Lesotho.

The Lesotho Department of Natural Resources granted the lease, which is renewable for an additional 10 years, concurrent with finalization of an agreement between Lucara and the Lesotho government.

The deal calls for Lucara to hold a 75 per cent interest in the project and the government the remaining 25 per cent. The Canadian company will pay the government a four per cent royalty of the sales value of the diamonds produced from the project during an initial pre-production test mining stage. At full production, the royalty increases to eight per cent.

Lucara president and chief operating officer William Lamb called the deal “a major step forward for the Mothae project.”

The Mothae kimberlite pipe has a surface area of 8.8 ha and is located in the northeast part of the landlocked nation. The low-grade pipe is said to contain large, high-value Type IIa diamonds.

Source URL: https://www.jewellerybusiness.com/news/lucara-gets-mothae-diamond-mining-lease/