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.
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