VANCOUVER, BC, Sept. 8, 2021 /PRNewswire/ -- (TSX:
LUC) (BSE: LUC) (Nasdaq Stockholm: LUC)
Lucara Diamond Corp. ("Lucara" or the "Company") is pleased to
announce that the Board of Directors has formally approved the
Karowe underground expansion project (the "UGP"), following the
Financial Close and satisfaction of all Conditions Precedent
pursuant to the previously announced senior secured project
financing debt package of US$220
million (the "Facilities") signed July 12, 2021 (link to news release). The
Facilities include two tranches: A project finance facility of
US$170 million to fund the
development of the underground project, and a US$50 million working capital facility to
re-finance the Company's existing debt and to support on-going
operations. A utilization notice from the US$170 million project loan facility has been
accepted and first funding for the Karowe underground expansion is
expected to be received in mid-September. Capital costs for the UGP
totaling US$534 million, will be met
with funds from a combination of the Facilities, the projected cash
flows from the Karowe open pit mine during the underground
construction period, and the equity financings totaling
C$41.4 million closed July 15 (link to news release), resulting in the
UGP being fully financed. A full update on the UGP was released
August 10 and can be found here. View
PDF version.
Zara Boldt, CFO & Corporate
Secretary commented: "We are delighted to have completed this
significant milestone following the signing of loan documentation
in mid-July. We would like to thank our Lenders and advisors for
their efforts towards achieving Financial Close of the
Facilities."
Construction efforts have ramped up since the Facilities
documentation was executed in mid-July. Ventilation shaft
pre-sinking has commenced with the completion of the first set of
cover holes, and a total of 4 blasts occurring to date with
continued drilling, mucking, and installation of ground support on
a 24 hour basis. The ventilation shaft depth below the shaft collar
is currently at approximately 17 meters. Mobilization to site of
the remaining pre-sinking equipment and contractors is underway.
Civil work on the remaining ventilation and production shaft
infrastructure is progressing well, with mobilization of temporary
generators and civils works associated with the generator pad
completed.
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 persons set out above at 2:00pm
Pacific Time on September 8,
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 and
include, without limitation, projected revenues from production at
the Karowe mine, diamond pricing assumptions and diamond market
trends, the ultimate use of proceeds from the Facilities; the
estimated capital cost and the duration of the construction period;
the timing of any drawdowns under the Facilities; and, that the
combination of funds from the Facilities, projected cash flows from
open pit operations and funds from the equity financing in July
will be sufficient to fully fund the UGP.
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made.
These assumptions, opinions and estimates are subject to a number
of known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Company to be materially different from any future results,
performance or achievement expressed or implied by such
forward-looking statements. The Company believes that expectations
reflected in this forward-looking information are reasonable, but
no assurance can be given that these expectations will prove to be
accurate and such forward-looking information included herein
should not be unduly relied upon. 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 and under the heading "Risk Factors" in the
Prospectus, a preliminary version of which is 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.
Investor Relations & Communications: +1 604 674 0272|
info@lucaradiamond.com; Sweden: Robert Eriksson, Investor
Relations & Public Relations, +46 701 112615 |
reriksson@rive6.ch; UK Public Relations: Charles Vivian / Jos
Simson, Tavistock, +44 778 8554035 |
lucara@tavistock.co.uk