The investment company, founded by Dev Shetty, has acquired the struggling miner and its assets, including the Lulo mine in Angola.
Dubai—Gaston International, a mining investment company based in the United Arab Emirates, has acquired diamond mining and exploration company Lucapa and its interests, which include the Lulo diamond mine, for about $10 million.
ASX-listed Lucapa Diamond Company Ltd., which has assets in Angola and Australia, went into involuntary administration in May.
Richard Tucker and Paul Pracilio of KordaMentha Restructuring were appointed administrators. They assessed the company and led the sale process.
Lucapa holds a 40 percent stake in the Lulo alluvial diamond mine in Angola, with the remaining share split between government-owned Endiama and Rosas & Petalas, a private company.
The company also had a 70 percent stake in the Mothae mine in Lesotho until last May, when it sold its shares to a local company as part of a strategy to streamline its portfolio.
Lulo is the world’s highest dollar-per-carat diamond mine, according to Gaston, having achieved $2,806 per carat in 2021.
The mine has produced 48 Type IIa diamonds weighing more than 100 carats since mining commenced in early 2015.
These include the 404-carat “4 de Fevereiro”—Angola’s largest recorded diamond—and the “Lulo Rose,” a 170-carat pink diamond recovered in 2022.
Lulo contains a remaining estimated 249,000 carats of diamonds.
The mine is equipped with two processing plants capable of handling approximately 600,000 cubic meters of gravel annually and features the latest modern technology designed to assist in recovering large diamonds, according to Gaston.
Lucapa also holds a 39 percent stake in the Lulo Kimberlite Exploration Project, also with Endiama (51 percent) and Rosas & Petalas (10 percent).
Gaston said the project, which involves looking for primary source kimberlites at the Lulo concession, has a “considerable exploration upside.”
More than 100 kimberlites have been confirmed in the Lulo area, Gaston said. Some that were sampled contained Type IIa diamonds, indicating the source of the large Type IIa diamonds recovered from Lulo is likely within the project exploration area.
As part of the deal, Gaston also will acquire Lucapa’s assets in Australia.
These are the Merlin diamond mine and base metals project in the Northern Territory of Australia, which the miner took over in 2021, and the Brooking Diamond Project in Western Australia, a package of exploration tenements in which Lucapa holds 80 percent interest.
The Merlin mine produced Australia’s largest diamond, and 75 percent of its historical yield has been gem and near-gem quality stones, including yellow, pink, and blue diamonds.
Gaston will collaborate with Lucapa’s partners and management to fully realize the value and growth potential of these assets, it said.
The transaction is subject to several conditions, including the approval of creditors, obtaining the necessary regulatory approvals, and the court granting leave to the administrators to transfer the shares under section 444GA of the Corporations Act 2001 (Cth).
Colored gemstone mining veteran Dev Shetty, who previously held executive roles at Gemfields and Fura Gems, heads Gaston.
It is a subsidiary of Jemora Group, a Dubai-based conglomerate Shetty founded in 2024 that specializes in metal and mining investments, trading precious metals and gemstones, and operating a gemstone auction house.
The new venture is focused on positioning the UAE as a key hub for mining investment.
On Aug. 4, Gaston announced the signing of a definitive agreement to acquire the Chacarilla Copper Mine in Bolivia.
Shetty, CEO of Gaston, said the Lucapa acquisition marks a defining moment for the group.
“After completing the transaction, we will focus on increasing Lulo mine production, accelerating kimberlite exploration in Angola, and carrying on with the strategic review of the Australian Merlin Mine,” he said.
“By leveraging our expertise and collaborating with Lucapa’s partners, we aim to unlock growth, create sustainable value, and strengthen Gaston’s leadership in the global diamond industry. We will also continue expanding our mining portfolio, with a focus on energy transition, precious metals, and gemstones.”
Ahmed Bin Sulayem, executive chairman and CEO of the Dubai Multi Commodities Centre (DMCC), called the Lulo mine a “strategic asset of worldwide importance.”
He said the Lucapa acquisition underscores Dubai as a leading global hub for the diamond trade, noting that Angola is a signatory of the Luanda Accord, an agreement signed last month by the governments of diamond-producing countries to invest in promoting natural diamonds.
“This milestone not only enhances Gaston’s standing in the precious stones market but also reinforces DMCC’s mission to attract, support, and grow world-class enterprises from Dubai,” Sulayem said.
“The UAE’s strategic location, strong infrastructure, and business-friendly environment continue to create unmatched opportunities for companies in the commodities sector, and Gaston’s achievement stands as proof of the strength of our platform and the trust global markets place in it.”