Lucara Announces Senior Secured Project Finance Facility Mandate for the Underground Expansion of the Karowe Mine

Lucara Diamond Corp. is pleased to announce the execution of a mandate for a senior secured undertaking funding package of up to US$220 million (the “Mandate”) to fund the underground growth at Lucara’s 100% owned Karowe Mine (“Karowe”) in Botswana. A syndicate of 5 worldwide financial institutions, including ING Financial institution N.V. (“ING”), Natixis (“Natixis”), Société Générale, London Department (“Société Générale”), Africa Finance Company (“AFC”) and Afreximbank (“Afrexim”) will act as the Mandated Guide Arrangers (“MLAs”). The formal Mandate consists of a non-binding indicative expression sheet for financial debt services of up to US$220 million (the “Facilities”).  Closing of the Amenities is focused to be mid-2021, with financing in spot for the next 50 % of 2021. View PDF Model

Eira Thomas, President and CEO commented: “The mandating of five foremost global economical establishments, with powerful mining and metals keep track of data and sizeable expertise in Africa, for the arrangement of +$200 million senior debt facilities, is a important achievement for Lucara. This financial debt offer will dietary supplement funds flows from continued operations of the Karowe open pit about the following 5 a long time, extending Karowe’s mine-lifetime out from 2025 until finally at minimum 2040. The task is underpinned by powerful economics, is anticipated to payback in below a few a long time and add more than $4 billion of supplemental revenues working with conservative diamond pricing assumptions. We are focusing on completion of the venture funding offer by mid-year, with entire challenge sanction thereafter.

The fascination of top rated tier economic establishments further validates Lucara’s status as a main, substantial margin diamond producer, which has shown resilience throughout the pandemic.  Karowe is very levered to strengthening diamond price ranges and is well positioned to get gain of the present-day market, as we have observed price ranges recovering to pre-pandemic amounts in early 2021.”

The execution of the Mandate is a critical milestone in the challenge funding approach for the Karowe underground expansion, which has an believed cash cost of US$514 million and a five-year advancement time period.  The stability of progress cash is envisioned to occur from working cash stream produced by open up pit operations at Karowe through the growth time period. The MLAs have commenced thorough due diligence on all areas of the financing and Lucara proceeds to function with them to conclude the owing diligence system in the in the vicinity of term. Closing of the Facilities is topic to completion of the customary procedures which includes owing diligence, remaining credit rating approvals and execution of remaining documentation. 

Terrafranca Advisory Limited is performing as monetary advisor to the Company. Norton Rose Fulbright LLP is performing as lawful counsel to the Business.

Eira Thomas
President and Chief Govt Officer

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ABOUT LUCARA

Lucara is a leading unbiased producer of huge fantastic quality Type IIa diamonds from its 100% owned Karowe Mine in Botswana. The Enterprise has an expert board and management crew with extensive diamond progress and functions abilities.  The Organization operates transparently and in accordance with worldwide very best techniques in the regions of sustainability, wellness and security, environment and group relations.

The data in this release is precise at the time of distribution but may be superseded or qualified by subsequent information releases.

This information is facts that the Organization is obliged to make general public pursuant to the EU Industry Abuse Regulation. The information and facts was submitted for publication, as a result of the company of the get in touch with individual set out over at 2:15pm Pacific Time on March 23, 2021.

CAUTIONARY Take note Concerning Ahead Looking STATEMENTS

Sure of the statements built and contained herein and in other places represent forward-wanting statements as outlined in relevant securities legal guidelines. Normally, these ahead-looking statements can be identified by the use of ahead-wanting terminology this kind of as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “probable”, “feasible” and related expressions, or statements that situations, conditions or outcomes “will”, “may well”, “could” or “need to” manifest or be attained.

This launch might consist of ahead hunting facts pertaining to the adhering to: the timing for an investment determination linked to developing an underground mine at Karowe, the arrangement of a senior secured task financial debt funding and the gratification of other circumstances to establish an underground mine at Karowe and predicted economics similar to the enhancement and operation of the proposed underground mine.  The Firm’s ability to achieve these situations may perhaps involve but is not minimal to: the receipt of all essential authorizations for the progress and operation of an underground mine, the anticipated time to prepare external financing, the quantum of that financing and that the proposed phrases of any exterior funding will be satisfactory to the Enterprise the capacity of the Firm’s money flows from functions to supplement the Firm’s external funding prerequisites the Firm’s skill to meet the believed timetable and spending budget to acquire underground functions and the accuracy of relevant estimates, the generation profile at Karowe and the timing to procedure ore from underground functions, anticipated changes in diamond pricing, which includes traits in provides and needs and the potential for security in the diamond sector and diamond pricing variations to overseas forex exchange prices and other forward on the lookout information.

There can be no assurance that these kinds of forward hunting statements will verify to be precise, as the Company’s effects and long term functions could vary materially from those people anticipated in this ahead-looking information as a outcome of people variables talked about in or referred to underneath the heading “Dangers and Uncertainties” in the Company’s most the latest Once-a-year Data Variety available at http://www.sedar.com, as perfectly as improvements in common enterprise and financial ailments, alterations in curiosity and international currency fees, the provide and demand for, deliveries of and the level and volatility of prices of rough diamonds, costs of electric power and diesel, functions of foreign governments and the outcome of lawful proceedings, inaccurate geological and recoverability assumptions (which include with respect to the dimension, quality and recoverability of mineral reserves and assets), and unanticipated operational complications (like failure of plant, machines or processes to operate in accordance with specs or anticipations, price escalations, unavailability of materials and machines, govt motion or delays in the receipt of federal government approvals, industrial disturbances or other career steps, adverse weather disorders, and unanticipated gatherings relating to health and fitness basic safety and environmental matters).

Accordingly, audience are cautioned not to put undue reliance on these ahead-wanting statements which converse only as of the date the statements were being created, and the Company does not presume any obligations to update or revise them to replicate new gatherings or situations, except as required by legislation.

PDF – https://mma.prnewswire.com/media/1472196/Lucara_Diamond_Corp.pdf

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