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Botswana|PROJECT|Underground
Botswana|PROJECT|Underground
botswana|project|underground

Lucara to raise at least $70m in private placement to fund Karowe underground project

The Karowe underground project

Photo by Creamer Media's Tasneem Bulbulia

12th January 2026

By: Creamer Media Reporter

     

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Independent diamond producer Lucara Diamond Corp, which owns and operates the Karowe mine, in Botswana, is planning to raise at least $70-million in a private placement of about 437.5-million shares at a price of $0.16 each.

The miner notes that trusts settled by the late Adolf H Lundin (the Lundin Family Trusts) have indicated their intention to participate in the private placement in order to maintain, and potentially increase, their interest in the company by subscribing for up to $70-million of the private placement. Nemesia, a private entity controlled by the Lundin Family Trusts, is currently Lucara's largest shareholder.

The net proceeds of the placement will be used to advance the Karowe underground project (UGP), including for shaft equipping, conveyance commissioning and lateral development, extraction and drill horizon development, as well as for general working capital and corporate purposes.

Lucara expects that full financing for the UGP will be achieved through a combination of operating cash flows, the private placement, additional debt financing and ongoing collaboration with the company's existing lenders to address any remaining funding requirements. The company is considering different alternatives for such additional debt financing, including a potential bond issue for which the company has mandated Clarksons Securities and Pareto Securities as advisers.

"We are pleased to advance this equity raise with the support of the Lundin Family Trusts, whose participation underscores the strategic significance of the Karowe UGP. This financing will enhance our ability to accelerate key developments planned for 2026," comments Lucara president and CEO William Lamb.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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