Lucara Diamond will raise C$38 million from a public offering and private placement, which is earmarked for working capital to support the development and ongoing operation of its 100%-owned Karowe diamond mine.
The diamond company said it has agreed with a syndicate of underwriters, led by BMO Capital Markets, that will acquire 29,4 million common shares for C$0.75 per share for gross proceeds of C$22 million.
It also agreed to launch a concurrent private placement of C$16 million on the same terms as the public offering to Nemesia and other investors on a private placement basis.
Lucara said it granted the underwriters an option, exercisable at the offering price for 30 days following the closing of the Public Offering, to purchase up to an additional 15% of the Public Offering to cover over-allotments, if any.
The offering and the private placement are expected to close on or about July 15, 2021 and are subject to Lucara receiving all necessary regulatory approvals.
Lucara recently recovered a 1,174.76-carat diamond from Karowe.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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