LUCARA ANNOUNCES RECOVERY OF STUNNING 36.92 CARAT BLUE DIAMOND FROM THE KAROWE MINE IN BOTSWANA

The most recent news (March 16, 2026) announces the recovery of a 36.92 carat high-quality blue Type IIB diamond from the Karowe Mine in Botswana. This follows a series of significant recoveries year-to-date, including five stones over 100 carats. Crucially, these recoveries are coming from surface stockpiles. This operational success follows a major financial restructuring on March 12, 2026, where Lucara successfully placed a US$350 million senior secured bond at a 12.5% fixed coupon to repay existing debt and fund the Karowe Underground Project (UGP).

The recovery of the 36.92 carat blue diamond is Routine - Positive. While blue diamonds are exceptionally rare and high-value, Lucara has a established history of recovering "Specials" (stones >10.8 carats). The materiality is tempered by the fact that the company is currently in a capital-intensive transition phase.

The more material news is the US$350 million bond placement. This is a double-edged sword: - Positive: It resolves the "going concern" doubt raised in 2025 by providing sufficient capital to complete the UGP (total cost US$779.2 million). It replaces a defaulted project facility and provides a two-year interest reserve. - Negative: The 12.5% interest rate is extremely high, reflecting the company's recent financial distress and the risky nature of underground transition. This creates a significant fixed-cost burden until full-scale underground production begins in 2028.

Lucara Diamond Corp. operates the Karowe Mine in Botswana, renowned for producing large, high-value Type IIa diamonds. The flagship initiative is the Karowe Underground Project (UGP), which aims to extend the mine life to at least 2040 by accessing the South Lobe (EM/PK(S) unit) at depth. The project is currently in the transition phase where open-pit mining has ceased, and the mill is fed by stockpiles until underground ore becomes available (scheduled for 2027/2028).