Lucara board formally approves Karowe underground expansion project in Botswana

Lucara Diamond’s board of directors has formally approved the Karowe underground expansion project, following the financial close and satisfaction of all conditions precedent under the senior secured project financing debt package of $220 million.
The financing debt package is divided into two. The first finance facility of $170 million will fund the development of the underground project, while the second one is a $50 million working capital facility that will re-finance the company's existing debt and support ongoing operations. 
Lucara said a utilisation notice from the $170 million project loan facility has been accepted and the first funding for the Karowe underground expansion is expected to be received in mid-September. 
Capital costs for the underground project totalling $534 million, will be met with funds from a combination of the Facilities, the projected cash flows from the Karowe open-pit mine during the underground construction period, and the equity financings totalling C$41.4 million closed July 15, resulting in the project is fully financed. 
"We are delighted to have completed this significant milestone following the signing of loan documentation in mid-July,” said Lucara chief financial officer and corporate secretary Zara Boldt.
Construction efforts have ramped up since the facilities documentation was executed in mid-July. 

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