Lucara Diamond has mandated five international financial institutions to raise $220 million to fund the underground expansion at its wholly-owned Karowe Mine, in Botswana.
The five are ING Bank N.V., Natixis, Société Générale, Africa Finance Corporation and Afreximbank.
"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," said company chief executive Eira Thomas.
She said the debt package will supplement cash flows from continued operations of the Karowe open pit over the next five years, extending Karowe's mine-life out from 2025 until at least 2040.
Lucara said 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 $514 million.
The balance of development capital is expected to come from operating cash flow generated by open-pit operations at Karowe during the development period.
Closing of the facilities is targeted for mid-2021 with financing in place for the second half of 2021.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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