TIDM0QUI
RNS Number : 2517T
Lucara Diamond Corp
24 March 2021
March 23, 2021
PRESS RELEASE
LUCARA ANNOUNCES SENIOR SECURED PROJECT FINANCE FACILITY MANDATE
FOR THE UNDERGROUND EXPANSION OF THE KAROWE MINE
VANCOUVER, March 23, 2021 /CNW/ - (LUC - TSX, LUC - BSE, LUC -
Nasdaq Stockholm)
Lucara Diamond Corp. is pleased to announce the execution of a
mandate for a senior secured project financing package of up to
US$220 million (the "Mandate") to fund the underground expansion at
Lucara's 100% owned Karowe Mine ("Karowe") in Botswana. A syndicate
of five international financial institutions, including ING Bank
N.V. ("ING"), Natixis ("Natixis"), Société Générale, London Branch
("Société Générale"), Africa Finance Corporation ("AFC") and
Afreximbank ("Afrexim") will act as the Mandated Lead Arrangers
("MLAs"). The formal Mandate includes a non-binding indicative term
sheet for debt facilities of up to US$220 million (the
"Facilities"). Closing of the Facilities is targeted to be
mid-2021, with financing in place for the second half of 2021.
Eira Thomas, President and CEO commented: "The mandating of five
leading international financial institutions, with strong mining
and metals track records and significant experience in Africa, for
the arrangement of +$200 million senior debt facilities, is a
significant achievement for Lucara. This debt package will
supplement cash flows from continued operations of the Karowe open
pit over the next 5 years, extending Karowe's mine-life out from
2025 until at least 2040. The project is underpinned by strong
economics, is expected to payback in under three years and
contribute more than $4 billion of additional revenues using
conservative diamond pricing assumptions. We are targeting
completion of the project financing package by mid-year, with full
project sanction thereafter.
The interest of top tier financial institutions further
validates Lucara's reputation as a leading, high margin diamond
producer, which has demonstrated resilience throughout the
pandemic. Karowe is highly levered to strengthening diamond prices
and is well positioned to take advantage of the current market, as
we have observed prices recovering to pre-pandemic levels in early
2021."
The execution of the Mandate is a key milestone in the project
financing process for the Karowe underground expansion, which has
an estimated capital cost of US$514 million and a five-year
development period. The balance of development capital is expected
to come from operating cash flow generated by open pit operations
at Karowe during the development period. The MLAs have commenced
detailed due diligence on all aspects of the financing and Lucara
continues to work with them to conclude the due diligence process
in the near term. Closing of the Facilities is subject to
completion of the customary processes including due diligence,
final credit approvals and execution of final documentation.
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
Follow Lucara Diamond on Facebook, Twitter, Instagram, and
LinkedIn
For further information, please contact:
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 Emily Moss / Jos Simson, Tavistock
+447788554035 | lucara@tavistock.co.uk
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 2:15pm Pacific Time on March
23, 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.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
RNS may use your IP address to confirm compliance with the terms
and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an
anonymised basis with others as part of our commercial services.
For further information about how RNS and the London Stock Exchange
use the personal data you provide us, please see our Privacy
Policy.
END
MSCPPUPAWUPGGRW
(END) Dow Jones Newswires
March 24, 2021 03:00 ET (07:00 GMT)
Lucara Diamond (LSE:0QUI)
Historical Stock Chart
From Feb 2024 to Mar 2024
Lucara Diamond (LSE:0QUI)
Historical Stock Chart
From Mar 2023 to Mar 2024