VANCOUVER, BC, Feb. 18, 2024 /PRNewswire/ -- (TSX: LUC) (BSE:
LUC) (Nasdaq Stockholm: LUC) Please view PDF version
Lucara Diamond Corp. ("Lucara" or the "Company") is pleased to
announce that it has entered into a new diamond sales agreement
("NDSA") with HB Group out of Antwerp, Belgium ("HB"), in
respect of all qualifying diamonds produced in excess of 10.8
carats in size from its 100% owned Karowe Diamond Mine
in Botswana.
Under the terms of the 10-year NDSA with HB, the purchase price
paid for Lucara's +10.8 carat rough diamonds shall be based on the
mutual agreement of the estimated polished outcome, determined
through state-of-the-art scanning and planning technology, together
with external benchmarks and more than a decade of Lucara's special
stone sales data. A further sales value uplift ("top-up") will be
paid to Lucara based on actual achieved polished sales thereafter,
less a fixed margin payable to HB. This pricing mechanism is
expected to deliver regular cash flow for this important segment of
the Company's production profile at better than conventional
diamond industry tender prices.
The anticipated benefits of the NDSA to Lucara include:
- Regular cashflow to Lucara in support of the ongoing
development of the Karowe Underground Project.
- Significant potential revenue upside, especially for large
complex rough diamonds, based on historical performance, providing
a premium on diamond sales benefiting all Karowe Mine
stakeholders.
- Ongoing alignment with the Government of Botswana's strategy to diversify downstream,
and participate in the upside of polished diamond revenue.
- Streamlined diamond evaluation, sales reporting and payment
mechanisms.
- The creation of an efficient and restructured, large and high
quality diamond supply chain which has the potential of meeting the
demands of high-value brands
The NDSA is subject to the approval of the Company's project
lenders. Upon such approval the agreement terms will be effective
retroactively from December 1, 2023.
Since that time, Lucara has continued to supply qualifying rough
diamonds to HB in order to fund its operations and the
Karowe Underground Project.
William Lamb, President & CEO
commented: "As we navigate through the ever-evolving landscape of
the diamond industry, I'm pleased to announce Lucara's strategic
decision to re-enter into a long-term supply agreement with HB
Antwerp. This partnership reflects our commitment to ensuring
stability and sustainability in our operations. Our collaboration
with HB Antwerp presents an opportunity to further enhance our
position in the market, building on the knowledge of the past and
the understanding of the quality of the polished diamonds produced
from our Karowe diamonds. We remain steadfast in our dedication to
delivering exceptional quality and premium value from our diamonds
to all stakeholders, even amidst external pressures. Together, we
will continue to uphold the legacy of excellence that defines
Lucara's journey in the world of diamonds".
On behalf of the Board,
William Lamb
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 Diamond Mine
in Botswana. The Karowe Mine has
been in production since 2012 and is the focus of the Company's
operations and development activities. Clara Diamond Solutions
Limited Partnership ("Clara"), a wholly-owned subsidiary of Lucara,
has developed a secure, digital sales platform which ensures
diamond provenance from mine to finger. Lucara has an experienced
board and management team with extensive diamond development and
operations expertise. Lucara and its subsidiaries operate
transparently and in accordance with international best practices
in the areas of sustainability, health and safety, environment, and
community relations. Lucara has adopted the IFC Performance
Standards and the World Bank Group's Environmental, Health and
Safety Guidelines for Mining (2007). Accordingly, the development
of the Karowe Underground Project adheres to the Equator
Principles. Lucara is committed to upholding high standards while
striving to deliver long-term economic benefits to Botswana and the communities in which the
Company operates.
ABOUT HB ANTWERP
HB Antwerp turns the diamond supply chain upside down
starting with the customer. Using technology, they bring simplicity
and transparency to a typically complex supply chain. Everything
happens in a closed loop called Signum in Antwerp, backed with
the latest technologies and tracked with blockchain making it 100%
transparent from diamond mine to market.
The information is information that Lucara is obliged to make
public pursuant to the EU Market Abuse Regulation and the Swedish
Securities Markets Act. This information was submitted for
publication, through the agency of the contact person set out
above, on February 18, 2024 at
7:00 p.m. Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
Certain of the statements made herein contain certain
"forward-looking information" and "forward-looking statements" as
defined in applicable securities laws. Generally, any statements
that express or involve discussions with respect to predictions,
expectations, beliefs, plans, projections, objectives, assumptions
or future events or performance and often (but not always) using
forward-looking terminology such as "expects", "is expected",
"anticipates", "believes", "plans", "projects", "estimates",
"budgets", "scheduled", "forecasts", "assumes", "intends",
"strategy", "goals", "objectives", "potential", "possible" or
variations thereof or stating that certain actions, events,
conditions or results "may", "could", "would", "should", "might" or
"will" be taken, occur or be achieved, or the negative of any of
these terms and similar expressions) are not statements of
historical fact and may be forward-looking statements.
In particular, forward-looking information and forward-looking
statements may include, but are not limited to, information or
statements with respect to the anticipated benefits of the Diamond
Sales Agreement, including the ability to achieve regular cash
flows and the ability to achieve better pricing than
available through tender.
Forward-looking information and statements are based on the
opinions and estimates of management as of the date such statements
are made, and they are subject to several 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, including
risks related to changes in the market for diamond sales. 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 correct.
Certain risks which could impact the Company and its performance
under the Diamond Sales Agreement are discussed under the heading
"Risks and Uncertainties" in the Company's most recently filed
Interim MD&A and, in the Company's most recent Annual
Information Form available at http://www.sedar.com (the "AIF").
The foregoing is not exhaustive of the factors that may affect
any of our forward-looking statements. Forward-looking statements
are statements about the future and are inherently uncertain, and
our actual achievements or other future events or conditions may
differ materially from those reflected in the forward-looking
statements due to a variety of risks, uncertainties, and other
factors, including, without limitation, those referred to in this
news release.
Although the Company has attempted to identify important factors
that could cause actual actions, events, or results to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events or results
not to be as anticipated, estimated or intended. The
forward-looking statements contained in this news release are based
on the beliefs, expectations, and opinions of management as of the
date of this disclosure. There can be no assurance that
forward-looking statements will prove to be accurate, as actual
results and future events could differ materially from those
anticipated in such statements. Accordingly, readers and investors
should not place undue reliance on forward-looking statements.
Forward-looking information and statements are made as of the date
of this disclosure and accordingly are subject to change after such
date. Except as required by law, the Company disclaims any
obligation to revise any forward-looking information and statements
to reflect events or circumstances after the date of such
information and statements. All forward-looking information and
statements contained or incorporated by reference in this news
release are qualified by the foregoing cautionary statements.
Hannah Reynish, 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
778 855 4035, lucara@tavistock.co.uk
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