VANCOUVER, May 5, 2021 /CNW/ - (TSX: LUC) (BSE: LUC)
(Nasdaq Stockholm: LUC)
Lucara Diamond Corp. is pleased to announce that it has received
credit approved commitments from a syndicate of five Mandated Lead
Arrangers (the "MLAs") for a senior secured project financing debt
package of up to US$220 million (the
"Facilities") to fund the underground expansion at Lucara's 100%
owned Karowe Mine ("Karowe") in Botswana. Please view PDF
version
The Facilities will include two tranches: A project finance
facility of US$170 million to fund
the development of the underground project, and a working capital
facility of US$50 million to support
the on-going operation of the Karowe open pit mine. Financial
closing of the Facilities is subject to satisfactory completion of
definitive documentation, and satisfaction of certain terms and
conditions, including appropriate KYC checks.
The MLAs are ING Bank N.V. ("ING"), Natixis ("Natixis"),
Societe Generale, London Branch
("Societe Generale"), Africa Finance Corporation ("AFC") and
Afreximbank ("Afrexim").
Eira Thomas, President and CEO commented: "Securing credit
commitments for the arrangement of +$200 million senior debt
facilities from five leading international financial institutions,
with significant mining and metals track records and experience in
Africa, is an important
achievement for Lucara and a strong endorsement of our underground
expansion plans. The Karowe diamond mine remains one of the
world's highest margin diamond mines and in just over eight years
of production, has yielded 4 of the 10 largest diamonds in recorded
history, including the 1,758 carat Sewelô, the largest diamond
recovered from Botswana, and the
1,109 Lesedi La Rona which sold for
US$53 million. This debt package will
supplement cash flows from continued operations of the open pit
over the next 5 years, extending Karowe's mine-life out from 2025
until at least 2040.
We look forward to working with this supportive group of MLAs
towards financial close as we continue to develop the underground
project."
Additionally, Lucara is also pleased to announce an extension of
its current working capital facility of US$50 million (the "Current Facility") with
Rand Merchant Bank, a division of
FirstRand Bank Limited, London
Branch. The Current Facility is expected to be extinguished when
the project financing debt package achieves financial close.
Terrafranca Advisory Limited is acting as financial advisor to
the Company. Norton Rose Fulbright LLP is acting as legal
counsel to the Company.
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 May 5,
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.
This release may contain forward looking information pertaining
to the following: the timing for an investment decision related to
developing an underground mine at Karowe, the arrangement of a
senior secured project debt financing and the satisfaction of other
conditions to develop an underground mine at Karowe and expected
economics related to the development and operation of the proposed
underground mine. The Company's ability to achieve these
conditions may include but is not limited to: the receipt of all
required authorizations for the development and operation of an
underground mine, the anticipated time to arrange external
financing, the quantum of that financing and that the proposed
terms of any external financing will be satisfactory to the
Company; the ability of the Company's cash flows from operations to
supplement 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.