Lucara arranges financing to raise at least $70M

Executive Summary

• Lucara Diamond Corp. announced a non‑brokered private placement of at least 437.5 million common shares at C$0.16 per share, targeting minimum gross proceeds of $70 million.
• Net proceeds are earmarked to advance the Karowe Underground Project (UGP), including shaft equipment, conveyance commissioning, lateral and drill‑horizon development, as well as general working capital.
• The Lundin family trusts intend to subscribe for up to the full $70 million, constituting a related‑party transaction that Lucara will rely on exemptions from formal valuation and minority‑shareholder approval requirements.

Key Details

• Placement Size & Pricing: Minimum of 437.5 million common shares at C$0.16 per share; minimum aggregate gross proceeds of $70 million.
• Use of Proceeds:
• Shaft equipping and conveyance commissioning for the UGP.
• Lateral development, extraction, and drill‑horizon development.
• General working capital and other corporate purposes.
• Regulatory & Closing Conditions:
• Subject to Canadian statutory hold period (4 months + 1 day).
• Completion contingent on TSX approval, other customary regulatory approvals, and execution of subscription agreements.
• Anticipated closing in late January (2027) pending approvals.
• Finder’s Fee: Up to 5% may be paid in connection with a portion of the placement.
• Related‑Party Participation: Lundin family trusts (via Nemesia S.a.r.l.) plan to subscribe for up to $70 million, qualifying as a related‑party transaction under MI 61‑101. Lucara will rely on exemptions from formal valuation and minority‑shareholder approval requirements.
• Financing Strategy: Full UGP financing expected from a mix of operating cash flow, this private placement, additional debt financing, and ongoing lender collaboration. Potential bond issuance being explored; Clarksons Securities and Pareto Securities appointed as advisers.
• Management Comment: William Lamb, President & CEO, stated the equity raise “will enhance our ability to accelerate key developments planned for 2026.”

Notable Quotes

“We are pleased to advance this equity raise with the support of the Lundin family trusts, whose participation underscores the strategic significance of the Karowe UGP. This financing will enhance our ability to accelerate key developments planned for 2026.” – William Lamb, President & CEO, Lucara Diamond Corp.