Lucara draws $10m from shareholder backing, highlights recent recoveries
Toronto-listed Lucara Diamond has drawn $10-million from a $63-million limited shareholder standby undertaking to address funding needs at its Karowe underground project (UGP) in Botswana.
The standby facility is provided by Lucara’s largest shareholder, Nemesia, and was originally part of the company’s amended senior secured project financing package, known as the Rebase amendments, announced in January 2024.
The facility includes $28-million to cover liquidity shortfalls until the completion of the UGP and $35-million as a funding shortfall guarantee.
Under the arrangement, Lucara will issue 7 500 common shares per $500 000 drawn per month to Nemesia, with settlement on a quarterly basis.
“The decision to draw $10-million from the standby undertaking provided by our largest shareholder represents a prudent approach to maintaining our financial flexibility during the current period of ongoing UGP capital expenditures,” said president and CEO William Lamb, Lucara’s president and CEO.
“This funding mechanism demonstrates the continued confidence and unwavering support of our major shareholders in Lucara's long-term strategy and the exceptional value potential, including the ongoing recovery of the world's most significant diamonds from our Karowe mine.”
Lucara also highlighted recent notable diamond recoveries at the 100%-owned Karowe mine. In August, the company recovered a 1 019.85-ca non-gem diamond – the ninth diamond over 1 000 ct from Karowe and the third this year. In addition, the company recovered a 37.42-ct near-gem pink Type IIa diamond, both sourced from EM/PK(S)1 material, the focus of the underground project and a known source of some of the world’s largest recorded natural diamonds.
Comments
Projects
Latest Multimedia
Latest News
Showroom
Goodwin Submersible Pumps Africa is sole distributors for Goodwin electrically driven, submersible, abrasion resistance slurry pumps.
VISIT SHOWROOM
Flatproofing tire technology engineered to perform in extreme mining environments.
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
