Lucara gets $31 million in new funding

Rob Bates

A few days after Lucara Diamond discovered yet another 1,000-plus ct. diamond at its Karowe mine (pictured) in Botswana, the company announced it has received 38 million Canadian dollars (about $30.9 million) in new funding.

There were two streams for this new funding. The first came from a group of underwriters, led by BMO Capital Markets, that agreed to buy 29.4 million common shares of the company, at CA$0.75 per share, for gross proceeds of CA$22 million (or approximately $17.9 million).

The underwriters also have the option to purchase additional shares of this public offering.

Concurrently, Lucara is offering a private placement of approximately CA$16 million (about $13 million), on the same terms as the public offering, to Nemesia S.à.r.l. and certain other investors. Nemesia is an insider of the company, and this deal is considered a “related party transaction.”

The two offerings are expected to close on July 15, pending all regulatory approvals.

The net proceeds of both offerings will be used for working capital to support the development and ongoing operation of the Karowe mine.

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Source JCK Online