Lucapa Diamond Secures $10M Rescue Deal with Dubai’s Jemora Group
Lucapa Diamond (ASX: LOM) Wins $10M Bailout from Dubai’s Jemora to Exit Administration
Lucapa Diamond Company (ASX: LOM), operator of Angola’s Lulo alluvial mine and Australia’s Merlin project, has struck a rescue deal with Dubai-based Jemora Group that could bring the struggling miner out of administration.
Administrators KordaMentha confirmed they have signed a deed of company arrangement with Jemora’s subsidiary, Gaston International, which has agreed to inject around A$15 million (US$10 million) into Lucapa.
Under the proposal:
Creditors would be paid in full.
Shareholders could receive a partial payout of up to 1.8 Australian cents per share — above Lucapa’s May 12 closing price of 1.4 cents.
Over the past year, Lucapa’s stock has traded between 1.3 and 9.7 cents.
Jemora, a metals and mining conglomerate working to establish the UAE as a global hub for resource investment, operates Gaston as its energy and precious metals arm.
Lucapa entered administration in May after being hit by:
Falling diamond prices and growing competition from synthetic stones.
Operational setbacks at its Lulo mine, including flooding in high-grade zones and a blockade by local leaders in February.
The sale of its Mothae mine in Lesotho in 2023, leaving Lulo as its sole income source.
Attempts to raise equity in April 2025 failed, as did efforts to sell a 40% stake in the Merlin project.
Administrators ruled the company insolvent by May 21, though financial stress had been evident since 2023.
If approved by creditors and the court, the proposed deal would:
Restructure Lucapa’s balance sheet.
Transfer company control to Jemora.
A creditor vote on the proposal is scheduled for August 20.
