VANCOUVER, Dec. 29, 2023 /PRNewswire/ -- (TSX: LUC) (BSE:
LUC) (Nasdaq Stockholm: LUC) Please view PDF version
Lucara Diamond Corp. ("Lucara" or the "Company") announces a
further short-term extension of the maturity of its $50 million senior secured working capital
facility (the "WCF") and a deferral of the requirement to place
$52.9 million in a cost overrun
reserve account (the "CORA") to the earlier of the conclusion of
discussions with its Lenders or January 15,
2024 (the "Longstop Date"). An earlier extension
granted by the Lenders was due to expire on December 31, 2023. Discussions to date with
the Lenders have been constructive and several amendments to the
Company's debt package have been agreed in principle. Lender
credit approval processes are ongoing.
The Company's debt package consists of two facilities (the
"Facilities"), a project finance facility of $170 million to fund the development of an
underground expansion at the Karowe Mine (the "Project Loan"), and
the WCF which is used to support ongoing operations. Presently,
$90 million is drawn from the Project
Loan and $35 million is drawn from
the WCF. The terms of the WCF extension do not permit further draws
from either the Project Loan or the WCF. The CORA balance is
currently $18.6 million. All currency
figures are in U.S. Dollars, unless otherwise stated.
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 that uses
proprietary analytics together with cloud and blockchain
technologies to modernize the existing diamond supply chain,
driving efficiencies, unlocking value and ensuring 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 expansion project ("UGP")
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.
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 December 29, 2023 at
2pm Pacific Time.
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.
Forward-looking statements are based on the opinions and
estimates of management as of the date such statements are made,
and they are subject to a number of 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. 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 accurate and such
forward-looking information included herein should not be unduly
relied upon. The value of the Company's shares, its financial
results and its mining activities are significantly affected by the
price and marketability of the diamonds recovered. The sales
price of a diamond is determined by its characteristics.
While the Karowe Diamond Mine has produced several large,
high-value diamonds in excess of 100 carats, there is no assurance
that the diamonds recovered which are 100 carats or larger will
have the characteristics required to achieve a high sales
price. Statements with respect to the length by which the
Karowe underground expansion project will extend the life of
mine are based on key underlying assumptions including, but
not limited to: future diamond prices, future diamond recoveries,
expected operating and capital costs, the timing to achieve key
construction milestones, the availability of sufficient financing,
people, equipment and materials when needed for construction and
operation of the underground mine, the economic potential of a
mineralized area, the size and tonnage of a mineralized area, the
estimation of mineral resources.
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 in Note 1 of the condensed interim consolidated
financial statements for the three and nine months ended
September 30, 2023, and in the
related interim MD&A under the headings "Liquidity and Capital
Resources", "COVID-19 Global Pandemic, Economic and Geopolitical
Risks" and under the heading "Risks and Uncertainties" in the
Company's most recent Annual Information Form, both available at
http://www.sedarplus.com, as well as changes in general business
and economic conditions, the ability to continue as a going
concern, changes in interest and foreign currency rates, changes in
inflation, the supply and demand for, deliveries of and the level
and volatility of prices of rough diamonds, costs of power and
diesel, impacts of potential disruptions to supply chains, 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.
CONTACT: 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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