Lucapa Diamond Company Limited (ASX: LOM), currently under voluntary administration, has announced a binding term sheet for a Deed of Company Arrangement (DOCA) proposed by Gaston International DMCC. Lucapa Diamond Company is involved in the mining and exploration of diamond resources. The company has projects and partnerships in multiple countries, focused on the discovery and production of high-value diamonds. The announcement follows the appointment of Richard Tucker and Paul Pracilio of KordaMentha as Voluntary Administrators on 22 May 2025. The administrators have concluded a dual-track sale and recapitalisation process.
The binding term sheet, entered on 12 August 2025, contemplates a transfer of all shares in Lucapa Diamond Company to Gaston International DMCC, a Dubai-based conglomerate specialising in metal and mining investments. The proposed DOCA is subject to several conditions precedent. These include approval by creditors at the second meeting of creditors scheduled for 20 August 2025, obtaining necessary regulatory approvals, and court approval to transfer shares under section 444GA of the Corporations Act 2001 (Cth).
The proposed DOCA aims to provide a return to creditors of 100 cents on the dollar. Furthermore, it estimates a return to shareholders of up to $0.018 per share, exceeding the company’s last traded price of $0.014. The return to shareholders is contingent upon the formal adjudication process of creditor claims. Detailed information about the binding term sheet and the proposed DOCA, including estimated returns to creditors and shareholders, are available in the Administrators’ Report dated 13 August 2025 on the Lucapa Diamond Company website.
The Administrators’ Report offers a comprehensive update on the administration process and the Administrators’ recommendations regarding creditor options. While shareholders cannot attend the creditor meetings, the outcome will be disclosed to the market. Shareholders with queries are encouraged to contact lucapa@kordamentha.com. Media inquiries should be directed to Rebecca Harrison from The Civic Partnership.
