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Vancouver, British Columbia, July 12, 2021 / CNW /-(Toronto Stock Exchange:Luke) (BSE: LUC) (NASDAQ Stockholm: LUC)
Lucara Diamond Corp. (“Lucara” or “Company”) is pleased to announce that it has signed the loan documents related to its previously announced senior secured project financing debt package. 220 million US dollars Lucara Botswana Proprietary Limited (“Lucara Botswana”) acts as a consortium (“Facilities”) formed by the borrower and five authorized lead arrangers (“MLA”). MLA is: Africa Export-Import Bank (Afreximbank), Africa Finance Corp., ING, Natixis and Societe Generale London branch. Afreximbank acts as the facility agent in connection with these facilities. Please view the PDF version
These financing consists of two parts: a project financing financing $170 million Provide funding for the development of underground projects, and 50 million USD Working capital financing, refinancing the company’s existing debt and supporting continued operations.Facilities, plus the recently announced equity financing totals approximately 30 million USD (“Initial Equity Contribution”) (Press release link), and the estimated cash flow from the Karowe open-pit mine during underground construction, leading to the full financing of the Karowe Underground Expansion Project (“UGP”).
President and CEO Eira Thomas commented: “Lucara is pleased to advance a fully financed underground expansion project that will extend the life of Karowe’s mine to at least 2040, and is expected to deliver at least US$4 billion Use conservative diamond price assumptions to increase income.Arrangements to ensure credit commitments 220 million US dollars Senior debt financing from five leading international financial institutions with important mining and metals performance records and experience in Africa is an important achievement for Lucara, reflecting confidence in Karowe’s resources and the scope and definition of the company in the past five years. This attractive and high economic growth opportunity.This also reflects confidence in the strong, safe and reliable operating environment that has prevailed in Karowe over the past eight years, adheres to high standards in ESG, and strives to Botswana And the communities in which we operate. The development of the underground expansion project will comply with all necessary environmental regulations and comply with the Equator Principles.
As a final comment, we believe that this expansion project was carried out at the right time in the market cycle. The improvement of supply and demand fundamentals will help stabilize and support stronger diamond prices in the short and long term. The Karowe mine remains one of the most profitable diamond mines in the world, producing 5 of the 10 largest diamonds in recorded history, and is the only mine that has mined three diamonds over 1,000 carats. “
After meeting certain prerequisites customary for financing of this nature, including the completion and receipt of initial equity contributions (“financial closure”), the first withdrawal under the financing is expected to occur in the beginning of the third quarter of this year.
In terms of financing, Nemesia Sarl (“Nemesia”), the company’s largest shareholder, has agreed to provide a limited standby commitment (“Shareholder Commitment”) in the event of a shortage of funds within thirty-six (36) months after the financial close.
The main terms of the project financing mechanism:
- Lucara Botswana Proprietary Limited, the 100% owner of the Karowe Mine is the borrower, and Lucara Diamond Corp. acts as the sponsor and guarantor until the project completion date;
- depending on $170 million Provide development funds,…
The full story on Benzinga.com
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