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Lucara Diamond Corp. has closed a private placement of $350 million that will allow it to continue work on its Karowe underground project.
The funds were issued as senior secured bonds, Lucara said Monday. The company used $220 million of that amount to pay off its previous finance facility and will use the remaining $130 million to cover interest on the loan and to support the continued development of Karowe.
The new facility also allows Lucara to access an additional $50 million, if needed, and to add a $50 million revolving credit facility. This will give the miner enough funding to complete the underground project, it explained.
“This financing marks a pivotal milestone for Lucara, significantly strengthening our balance sheet and providing the financial certainty required to advance the underground project through to completion,” said Lucara CEO William Lamb. “The successful placement…, alongside the full repayment of our existing project debt, simplifies our capital structure while enhancing our liquidity and financial flexibility. Importantly, the additional capacity through the tap option [of a further $50 million] and potential revolving credit facility provides further strategic headroom as we execute on the next phase of underground development.”
Image: The Karowe mine (Lucara Diamond Corp.)
