Lucara completes $350-million (U.S.) bond financing

Executive Summary

• Lucara Diamond Corp. successfully completed a private placement of $350 million (U.S.) in senior secured bonds with a five-year tenor and a 12.5% fixed annual coupon.
• The net proceeds are designated to repay $220 million (U.S.) of existing senior secured project finance debt, finance two years of interest on the new bonds, and cover residual costs for the Karowe Underground Project (UGP).
• This financing, combined with a $165 million (Canadian) equity offering from January 2026, fully funds the $779.2 million (U.S.) capital cost of the UGP, allowing the company to proceed with development without further financing.

Key Details

• Bond Structure: $350 million (U.S.) senior secured bonds.
• Tenor: Five years.
• Coupon Rate: 12.5% per annum, fixed.
• Interest Payments: Payable in quarterly instalments.
• Settlement Date: Expected on or around March 27, 2026, subject to customary conditions precedent.
• Use of Proceeds:
  • Repayment of $220 million (U.S.) existing senior secured project finance debt.
  • Financing of two years of interest on the bonds held in a dedicated debt service retention account.
  • Residual costs related to the underground project at the Karowe mine (UGP).
• Listing Intent: The company intends to apply to list the bonds on the Oslo Alternative Bond Market.
• Capital Cost Coverage: The bond issuance, combined with $165 million (Canadian) raised in a January 2026 equity offering, provides sufficient capital for the total $779.2 million (U.S.) capital cost of the UGP.
• Capital Expenditure Status: $469.4 million (U.S.) of the UGP capital cost had been incurred as of December 31, 2025, per the updated feasibility study filed January 30, 2026.
• Investor Allocation: Nemesia SARL, a private entity controlled by the Lundin Family Trust, was allocated $30 million (U.S.) in the bond financing.
• Advisors: Clarksons Securities AS and Pareto Securities AS acted as joint bookrunners.
• Project Timeline: Underground development ore from the UGP is scheduled to begin offsetting stockpiles in 2027, with full-scale underground production planned for the first half of 2028.

Notable Quotes

• "Following our upsized and highly successful equity private placement in January, we are very pleased to announce the completion of this bond issuance, marking the completion of the final step in securing the full financing package for the Karowe underground project. The bond issue attracted strong interest from a broad range of international investors, reflecting continued confidence in the exceptional quality of the Karowe mine and its long-term value potential. With the project now fully financed, we can focus all our efforts on executing the remaining development work and advancing Karowe toward a new phase of sustainable, high-value diamond production." — William Lamb, President and CEO