Dubai-Based Gaston Acquires Lucapa from Adminstrators
August 18, 25
(IDEX Online) - Gaston International DMCC, a Dubai-based company that specializes in metals and mining investments, is acquiring Australia-based Lucapa Diamond Company, which went into voluntary administration in May.
Melbourne-based administrators KordaMentha say they have now concluded a dual track sale and recapitalization process. Terms of the deal were not disclosed.
Lucapa holds a 40 per cent stake in the Lulo alluvial mine in Angola, which has yielded 48 Type IIa diamonds over 100 carats in the 10 years since it opened, and is developing the Merlin Diamond Project in the Northern Territory, Australia. The acquisition will allow Gaston to revitalize both projects,
Last June, it offloaded its 70 per cent stake in the Mothae mine, in Lesotho, to a local contractor for a nominal sum.
But in its latest quarterly update, Lucapa reported a 36 per cent revenue increase and a 42 per cent rise in average per carat prices ($1,523)
Gaston is known for acquiring underperforming mining assets. It is part of Jemora Group, a Dubai-headquartered conglomerate, founded and led by industry veteran Dev Shetty, which is positioning the UAE as a global hub for resource investment and gemstone trading.
Shetty is the founder of Fura Gems and was CEO there until last year. He was also COO and executive director at Gemfields.
Creditors will be fully paid, and shareholders will get some return. The situation will be clearer after creditor meetings on Wednesday (20 August).
File pic of Lucapa's Lulo mine, in Angola.