Lucara Sells Diamond-Sales Platform to Former CEO

Lucara Diamond Corp. has sold its Clara diamond-sales platform back to original founders, HRA Group and former CEO Eira Thomas, while maintaining a five-year supply agreement to sell its rough through the system. 

The sale will give HRA and Thomas full ownership of the platform, which matches buyers with rough according to their specific requirements, as well as any intellectual property rights, commercial contracts, and operating assets, Lucara said Monday. Under new ownership, Clara will be able to meet its intended goal more effectively, the company continued. 

“We are excited about the opportunity to realize [Clara’s] full potential, which remains largely unexplored,” said Aaron Ariel, managing director and original founder of Clara. “We believe it will become the industry’s premier global rough-diamond marketplace. We look forward to partnering with stakeholders throughout the supply chain…and cannot wait to work together to take it to the next level.” 

Meanwhile, the buyers will pay Lucara $3 million in cash; return 10 million common shares in the miner, which were initially paid out by the company in 2018 as part of the platform’s acquisition; and provide another 3.4 million common shares as payment for the transfer. 

Additionally, Lucara will retain 3% of the profit earned through Clara. The miner will also have the option to list rough from its Karowe mine in Botswana on the platform through a five-year supply agreement, Lucara explained. That deal can be terminated after two years, or earlier, with both parties’ consent. 

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

While the Clara platform has been a powerful digital channel for the company’s own rough-diamond sales, as a pure-play diamond producer Lucara couldn’t onboard enough supply from other miners to scale the platform, he added.  

“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,” Lamb concluded.

Image: A 166ct. rough diamond. (Lucara Diamond Corp.)