Lucara closes $165-million private placement

Executive Summary

• Lucara Diamond Corp. has closed an upsized, non-brokered private placement with total gross proceeds of $165.0 million, driven by strong investor demand.
• The company issued over 1 billion common shares at $0.16 per share, with participation from institutional investors and the Lundin family trusts.
• Proceeds are designated to address a liquidity shortfall, fund the development of the Karowe underground project (UGP), and support general working capital, while the company pursues additional debt financing for the project.

Key Details

• Transaction Structure: Non-brokered private placement, closed on Jan. 19, 2026 (previously announced Jan. 9, upsized Jan. 14).
• Gross Proceeds: $165.0 million.
• Shares Issued: 1,031,250,000 common shares.
• Price Per Share: $0.16 CAD.
• Investor Participation: Included institutional investors globally and the Lundin family trusts.
• Finder’s Fees: $2.5 million paid to select finders (BMO Nesbitt Burns Inc., Haywood Securities Inc., Leede Financial Inc., Canaccord Genuity Corp., and Pareto Securities AB) for a portion of the placement; Lundin family trusts did not pay fees.
• Hold Period: All common shares are subject to a four-month statutory hold period under Canadian securities laws.
• Use of Proceeds:
  • Address liquidity shortfall.
  • Advance the Karowe underground project (UGP), specifically shaft equipping, conveyance commissioning, lateral development, and extraction/drill horizon development.
  • General working capital and corporate purposes.
• Future Financing Strategy:
  • Full UGP financing to be achieved via operating cash flows, this private placement, additional debt financing, and collaboration with existing lenders.
  • Considering additional debt options, including a potential bond issue.
  • Advisers for potential debt financing: Clarksons Securities AS and Pareto Securities AB.
• Regulatory Compliance: Relied on the financial hardship exemption under Section 604(e) of the Toronto Stock Exchange (TSX) company manual, which was accepted by the TSX.

Notable Quotes

• William Lamb, President and CEO: "We are very pleased with the outcome of the recent oversubscribed private placement, which included participation of a number of institutional investors from around the world as well as the Lundin family trusts. This financing will enhance our ability to accelerate key developments on the Karowe underground project planned for 2026."