ASX Round-Up: Highlighting Lucapa Diamond and Magnis Resources

For investors focused on the resource space, a good way to track companies listed in Australia is to look at the S&P/ASX 300 (INDEXASX:XKO). The index includes all S&P/ASX 200 (INDEXASX:XJO) companies as well as about 100 smaller-cap companies, and as of April 2015 accounted for 74 percent of the Australian equities market. Specifically, the S&P/ASX 300 Metal & Mining (INDEXASX:XMM) division is a great source for companies to watch.

Resource Investing News is thus profiling companies on the S&P/ASX 300 Metal & Mining index. This week, we take a look at Lucapa Diamond Company (ASX:LOM) and Magnis Resources (ASX:MNS).

Lucapa is a miner of world-class diamonds and operates the Lulo diamond concession in Angola’s Lunda Norte province. The company announced this week the sale of a third parcel of diamonds for proceeds of AU$790,000. This sale brings the total of the three parcels to $6.8 million. Additionally, this month the company recovered a 63.05-carat diamond that will be included in its fourth parcel.

“The confirmation we have now received that the 63 carat Type II diamond is in fact D-colour means we have now recovered five large exceptional white diamonds from our combined bulk sampling and production programs from less than 35,000 bulk cubic metres processed,” said Lucapa Chief Executive Stephen Wetherall.

Magnis Resources is an Australia-based exploration and development company that owns 100 percent of the Nachu graphite deposit based in Southeast Tanzania. Most recently, the company released its Q1 report, noting that during the period it accelerated the development of Nachu, with other milestones including the signing of a US$150-million debt finance binding term sheet with SINOMA. The funding will cover engineering, procurement, construction and financing for the Nachu project.

“Securing a binding term sheet for financing the Nachu Graphite Project for an amount of US$150 million truly puts Magnis in a strong position,” said Magnis Chairman Frank Poullas. “To have a relationship with such a strong partner in SINOMA, one of the largest and most recognized integrated graphite companies in the world, is significant.”

Editorial Disclosure: Magnis Resources is a client of the Investing News Network. This article is not paid-for content. 

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