VANCOUVER, BC, Jan. 4, 2021 /CNW/ - (TSX: LUC) (BSE: LUC)
(Nasdaq Stockholm: LUC)
Lucara Diamond Corp and Lucara Botswana (Proprietary) Limited
(both "Lucara" respectively) are pleased to announce that the
application for the renewal of Mining Licence No 2008/6L in respect
of its AK06 (Karowe) Mine has been approved by Botswana's Minister of Mineral Resources,
Green Technology and Energy Security. The renewal is effective
January 4, 2021 for a period of 25
years, securing Lucara's mining rights to 2046 and marks a critical
step in the formal sanction of the Karowe underground expansion
project. View PDF version.
Eira Thomas, President and CEO commented: "The receipt of our
mining licence renewal and extension to 2046 is an important
milestone for the Karowe underground expansion project, paving the
way for the completion of a supplemental debt financing and full
project sanction later this year. Lucara is grateful for the
confidence and support demonstrated by the Government of
Botswana as we work to expand our
operations at Karowe underground, for the benefit of the Government
and the people of Botswana
together with Lucara's shareholders. We look forward to continued
cooperation and a mutually rewarding partnership with the
Government of Botswana."
The Karowe underground expansion project, which continued to
advance in 2020 under a revised US $22
million budget in response to Covid, focused on time
critical-path items, detailed engineering and design, and limited
earth works and geotechnical studies. The Company continues to
explore debt financing options for the underground expansion for
those amounts which are expected to exceed the Company's cash flow
from operations during the construction period. The Company
anticipates financing to be in place by the second half of this
year. The underground expansion program has an estimated capital
cost of $514 million and a five-year
period of development, with first ore anticipated from underground
in 2026.
Eira Thomas
President and Chief Executive Officer
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ABOUT LUCARA
Lucara is a leading independent producer of large exceptional
quality Type IIa diamonds from its 100% owned Karowe Mine in
Botswana. The Company has an
experienced board and management team with extensive diamond
development and operations expertise. The Company operates
transparently and in accordance with international best practices
in the areas of sustainability, health and safety, environment and
community relations.
The information in this release is accurate at the time of
distribution but may be superseded or qualified by subsequent news
releases.
This information is information that the Company is obliged to
make public pursuant to the EU Market Abuse Regulation. The
information was submitted for publication, through the agency of
the contact person set out above at 2:00pm
Pacific Time on January 4,
2021.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain of the statements made and contained herein and
elsewhere constitute forward-looking statements as defined in
applicable securities laws. Generally, these forward-looking
statements can be identified by the use of forward-looking
terminology such as "expects", "anticipates", "believes",
"intends", "estimates", "potential", "possible" and similar
expressions, or statements that events, conditions or results
"will", "may", "could" or "should" occur or be achieved.
In particular, this release may contain forward looking
information pertaining to the following: the timing for an
investment decision, the arrangement of external financing and the
satisfaction of conditions to develop an underground mine at
Karowe, which may include but which are not limited to: the receipt
of all required authorizations, the arrangement of external
financing on terms satisfactory to the Company and the timing of
that financing; what impact the Company's cash flows from
operations could have on the Company's external financing
requirements; the Company's ability to meet the estimated schedule
and budget to develop underground operations and the accuracy of
related estimates, the production profile at Karowe and the timing
to process ore from underground operations, anticipated changes in
diamond pricing, including trends in supplies and demands and the
potential for stability in the diamond market and diamond pricing;
changes to foreign currency exchange rates; and other forward
looking information.
There can be no assurance that such forward looking statements
will prove to be accurate, as the Company's results and future
events could differ materially from those anticipated in this
forward-looking information as a result of those factors discussed
in or referred to under the heading "Risks and Uncertainties"' in
the Company's most recent Annual Information Form available at
http://www.sedar.com, as well as changes in general business and
economic conditions, changes in interest and foreign currency
rates, the supply and demand for, deliveries of and the level and
volatility of prices of rough diamonds, costs of power and diesel,
acts of foreign governments and the outcome of legal proceedings,
inaccurate geological and recoverability assumptions (including
with respect to the size, grade and recoverability of mineral
reserves and resources), and unanticipated operational difficulties
(including failure of plant, equipment or processes to operate in
accordance with specifications or expectations, cost escalations,
unavailability of materials and equipment, government action or
delays in the receipt of government approvals, industrial
disturbances or other job actions, adverse weather conditions, and
unanticipated events relating to health safety and environmental
matters).
Accordingly, readers are cautioned not to place undue reliance
on these forward-looking statements which speak only as of the date
the statements were made, and the Company does not assume any
obligations to update or revise them to reflect new events or
circumstances, except as required by law.
SOURCE Lucara Diamond Corp.