Lucapa Diamond in trading halt ahead of acquisition of new project

Trading of Lucapa Diamond (ASX:LOM) shares was halted Friday in Sydney after the company said it has acquired a new project, whose details expects to disclose soon.

The Africa-focused diamond miner said it anticipates the resumption of trading before the open on Tuesday next week, “pending the finalization of negotiations.” The stock last traded at 3.9 Australian cents.

Lucapa expects to resume trading before the open on Tuesday next week.

In the last year, the Perth-based firm has been advancing its Lulo diamond project in Angola, which has already yielded massive gems, including the 404.2-carat white rock found early this year, which is considered the largest diamond ever recovered in Angola and the biggest ever found by an Australian company.

Lucapa’s Lulo project is 150km from Alrosa's Catoca mine, the world's fourth largest diamond mine. It hosts type-2a diamonds, which account for less than 1% of global supply.

The country were its located, Angola, is the world’s No.4 diamond producer by value and No.6 by volume. Its industry, which began a century ago under Portuguese colonial rule, is successfully emerging from a long period of difficulty as a result of a civil war that ended in 2002.

Last year, the government reduced taxes and cut state ownership requirements to rekindle the industry after the global financial crisis forced mines to close.