Lucara Diamond has increased a previously announced non-brokered private placement to $165 million due to strong investor demand.
The diamond miner will issue just above 1 billion common shares at a price of $0.16 per share.
The net proceeds are earmarked to advance the Karowe Underground Project (UGP) in Botswana.
Specific uses will include shaft equipping, commissioning, lateral development, and general working capital.
"The decision to upsize this equity financing reflects strong investor demand, led by the continued support of the Lundin Family Trusts," said Lucara president and chief executive William Lamb.
"The upsized proceeds meaningfully strengthen the company's capacity to advance the Karowe UGP and execute key development milestones targeted for 2026."
The Lundin Family Trusts have indicated their intention to participate by subscribing for up to $70 million of the placement.
This participation constitutes a "related party transaction," and the company intends to rely on certain regulatory exemptions for its completion.
The private placement is subject to regulatory approvals, including from the Toronto Stock Exchange, and other customary closing conditions.
Lucara anticipates closing the transaction in late January.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
