(Ecofin Agency) - Mining firm Lucapa Diamond secured from singaporean Equigold Pte, a $15 million financing to develop the first phase of its Mothae diamond project in Lesotho.

Under the related agreement’s terms, the three-year loan will be repaid in eight quarterly tranches, starting from December 2018. It is at this date that Lucapa plans to make Mothae enter stable production. The loan will be reimbursed at a yearly interest rate of 13%.

“This facility is a significant result for Lucapa and its shareholders. It ensures that the company, together with the government of Lesotho, will bring Mothae on stream in 2018,” said Lucapa’s managing director, Stephen Wetherall, who added that the mine will be the second cash-producing asset and high-producing asset of the firm, after Lulo’s in Angola.

According to Lucapa Diamond’s plans, the first development stage of Mothae will involve treatment of about two millions tons of ore over three years, at a rhythm of 720,000 tons per year. The second stage of the project will be initiated only after phase 1 is completely launched.

Louis-Nino Kansoun