Lucara gets $220 mln to finance underground expansion, ongoing Karowe operations

Lucara Diamond has signed loan documentation with a syndicate of five mandated lead arrangers (MLAs) concerning its previously announced senior secured project financing debt package of $220 million to fund the development of the underground project at Karowe mine in Botswana.
The MLAs are African Export-Import Bank (Afreximbank), Africa Finance Corp., ING, Natixis, and Societe Generale, London Branch. 
Of the total amount, $50 million would go towards working capital facility to re-finance the company's existing debt and to support ongoing operations. 
"Lucara is excited to be moving forward with a fully financed underground expansion project, extending Karowe's mine life to at least 2040 and projected to deliver at least $4 billion in additional revenues using conservative diamond price assumptions,” said company chief executive Eira Thomas.
“Securing credit commitments for the arrangement of $220 million senior debt facilities from five leading international financial institutions, with significant mining and metals track records and experience in Africa, is an important achievement for Lucara and reflects confidence in the large-stone resource at Karowe and the considerable efforts undertaken over the last five years to scope and define this attractive, [high] economic growth opportunity for the company.”
The Karowe mine remains one of the highest margin diamond mines in the world, having yielded five of the 10 largest diamonds in recorded history and is the only mine to have recovered three diamonds greater than 1,000 carats, she said.

Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished