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clock Created with Sketch. 04/02/19
11:51
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Originally posted by marlin57:
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LULO PARTNERS DECLARE US$8M DIVIDEND/ LOAN REPAYMENT- Lulo partners to receive US$4 million in dividends – US$1.6m attributable to Lucapa- Lucapa to receive US$4 million repayment of investment loanLucapa Diamond Company Limited (ASX: LOM) (“Lucapa” or “the Company”), Empresa Nacional deDiamantes E.P. (“Endiama”) and Rosas & Petalas (“the partners”), are pleased to announce thatduring the General Assembly of Sociedade Mineira Do Lulo (“SML”), the partners resolved to declarean US$8 million distribution and loan repayment.The US$8 million declaration by SML comprises:• A US$4 million distribution to the Lulo partners, of which Lucapa will receive US$1.6 millionin line with its 40% interest in SML; and• A US$4 million loan repayment to Lucapa.The US$8 million will be paid from the cash reserves of SML, which operates the Lulo alluvial mine,the world’s highest US$ per carat alluvial production. The Lulo diamond mine has been producingcommercial run of mine diamonds since 2015 and now employs 390 workers and contractors, 87% ofwhom are Angolan nationals.The latest declaration from SML follows an US$8 million loan repayment and distribution declaredto Lucapa and its partners in March 2017 (Refer ASX announcement 8 March 2017). This marks thethird consecutive year that a distribution has been made by Lulo.
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Sure, the US$5.6m attributable to LOM is 70% of the free cash distribution as per the agreement. That is US$1.6m in the form of a 40% share (LOM's sahreholding% of SML) plus US$4m loan repayment. The remaining participants ('partners', as they are referred to in the announcement) received $2.4m to share between them, depending on their individual % shareholdings in SML, which I've now forgotten.
