Canada-headquartered Lucara Diamond is selling its 100% interest in the Clara rough diamond sales platform to its original founders, a group led by the HRA Group of Companies and Eira Thomas.

Clara is a rough diamond digital marketplace aiming to modernise how rough diamonds are sold, using technology to connect buyers and sellers.

It enables verification technologies to integrate provenance and traceability services by transacting individual rough diamonds, with the aim of providing improved standards of transparency and trust.

Under the terms of the definitive sales agreement, the founders will acquire 100% ownership of Lucara’s interests in Clara Diamond Solutions, Clara Diamond Solutions Limited Partnership and Clara Diamond Solutions, including all intellectual property rights, commercial contracts and operating assets.

The total consideration comprises about $3-million in cash at closing and the return of ten-million Lucara common shares initially issued as partial consideration when the company originally acquired the Clara platform in 2018.

It also entails the transfer of liabilities tied to sales performance metrics or a change of control, amounting to a share issuance obligation of 13.4-million Lucara common shares.

Lucara will retain a 3% net profit interest on Clara’s net earnings.

The company has also granted Clara a five-year rough diamond supply agreement for diamonds meeting the size and quality specifications historically sold through the Clara platform.

This supply agreement may be terminated after the second anniversary or as otherwise mutually agreed between the parties.

“The divestiture of Clara enables us to intensify our strategic focus on maximising returns and long-term value creation at our world-class Karowe diamond mine in Botswana. The company’s core competencies and future growth reside in the successful execution of the Karowe underground expansion project,” Lucara CEO and president William Lamb explains.

“While the Clara platform provides an innovative digital channel for rough diamond sales, the successful onboarding of other producers’ rough production required to scale the platform, remains unattainable while the platform is owned by a pure-play diamond producer.

“Lucara maintains its conviction, reinforced by our supply agreement with Clara, that this technology will play an important role in the shaping of a demand driven diamond sector,” he adds.

The effective transaction date is October 4, subject to customary closing conditions and amendments.