Police minister buys Mothae Mine


MASERU – The Minister of local government, chieftainship, home affairs, and police has purchased Mothea Mine through his company Lephema Executive.

Lucapa Diamond Company, an Australian mining giant, recently announced the details of the Agreement regarding the sale of its Mothae Diamond Mine in Butha-Buthe.

As part of the Agreement, Lucapa will receive a nominal purchase price of M118, 878.97 from Executive, the purchasing party. Lucapa will also receive approximately M12 million from Mothae in outstanding technical services payments. This financial arrangement ensures that Lucapa is compensated for its contributions to the mine’s development.

In addition to the financial aspects, the Agreement also includes the transfer of liabilities and guarantee obligations from Lucapa to Executive. This means that Executive will assume all the responsibilities and obligations related to Mothae that were previously held by Lucapa. This transfer of liabilities ensures a smooth transition of ownership and operation of the mine.

Despite the sale, Lucapa will continue to provide technical services to Mothae under a separate technical services agreement which will be based on normal commercial terms and will last for a minimum of three months. This arrangement allows for a seamless transition and ensures that the expertise and knowledge of Lucapa will still be utilised in the operation of Mothae Diamond Mine.

Mothae is an open cast mine which began commercial operations in 2019 and is known to produce large, high-value diamonds. These include a 215 carat D-colour Type IIa, a 204 carat Type IIa and rare pink, blue and yellow fancy coloured diamonds which have been recovered at the mine over the years. Lucapa owns 70 percent stake while the Lesotho government owns the remaining 30 percent.

The mining company announced its intention to sale its stake in a statement in May, where it revealed that it wished to provide a corporate update following a review of the asset portfolio by the company’s newly restructured board of directors.

It also considered all options for the divestment of its 70 percent stake in Mothae and the company was discussing the options with the government of the Kingdom of Lesotho, the 30 percent partner in the mine.

The Agreement follows a strategic review of the company’s portfolio of assets undertaken by the newly restructured board of directors (ASX Announcement dated May 15 2024). The divestment of the stake in the non-core asset enables the Company to focus on developing its Angolan and Australian assets.

Lucapa Managing Director and CEO, Nick Selby, commented on the divestment.

“This agreement is the result of a period of offer and negotiation involving Lucapa and several interested parties. 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,” he said.

Under the Agreement, Lucapa will receive a nominal purchase price of A$10,000 from Executive as well as approximately A$1 million from Mothae in outstanding technical services payments. Executive will assume all liabilities and guarantee obligations relating to Mothae currently held by Lucapa.

Lucapa has received confirmation from the ASX that shareholder approval is not required under ASX Listing Rule 11.1 and 11.2 and, as a result, the Company will not seek shareholder approval for the transaction.