Lucara Announces $31m of New Funding for Karowe
June 28, 21
(IDEX Online) - Lucara has announced $31m of new funding to operate and develop its Karowe mine, in Botswana.
It comes just days after the miner revealed the recovery of a 1,174-carat diamond at the deposit, which has a reputation for producing large, high quality, Type IIa stones.
Canada-based Lucara is raising $22m from syndicate of underwriters led by BMO Capital Markets and $16m in a private placement from Nemesia S.a.r.l and other investors.
The company secured $220m of debt financing last month to fund the five-year $500m underground expansion of Karowe.
In January the government Botswana extended its mining license for a further 25 years. This year, the mine is forecast to produce between 340,000 and 370,000 carats.
Last year it produced 31 diamonds over 100 carats, including 10 over 200 carats.
The newly-discovered stone from Karowe mine, is a clivage gem, which will need to be split before being processed further. It is believed to have been part of an even bigger rough stone weighing more than 2,000 carats.
Pic shows Karowe mine