Lucara Diamond has closed its previously announced bought deal financing and concurrent private placement for C$41.4 million.
It said 33,8 million common shares of the company, including 4,4 million common shares issued pursuant to the over-allotment option, which was exercised in full, were sold at a price of C$0.75 per share for gross proceeds of about C$25.4 million.
The private placement saw 21,3 million common shares being sold at a price of C$0.75 per share for additional gross proceeds of C$16 million.
Lucara said the net proceeds of the financing will be used for working capital to support the development and ongoing operation of the Karowe diamond mine, in Botswana, including the Karowe underground expansion project.
The company recently 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.
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.
The miner also recovered a 62.7-carat fancy pink diamond this week, which is the largest fancy pink gem to be recovered in Botswana and one of the world's largest rough pink diamonds on record.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
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