- Lucara Diamond Corp ups private placement to $165 million amid strong investor demand
GAZETTE REPORTER
Lucara Diamond Corp announced an increase in its previously announced non-brokered private placement, now totaling 1,031,250,000 common shares at $0.16 per share, raising gross proceeds of $165 million. All amounts are in Canadian dollars unless stated otherwise.
Project Advancement
The company said the net proceeds will be used to advance the Karowe Underground Project (UGP), including shaft equipping, conveyance commissioning, lateral development, extraction, and drill horizon development. Funds will also support general working capital and corporate purposes.
Investor Support
William Lamb, President and CEO of Lucara, said, “The decision to upsize this equity financing reflects strong investor demand, led by the continued support of the Lundin Family Trusts. The upsized proceeds meaningfully strengthen the Company’s capacity to advance the Karowe UGP and execute key development milestones targeted for 2026.”
Regulatory Approval
The offered securities will be issued under exemptions from prospectus requirements and will be subject to a Canadian statutory hold period of four months and one day. The company may pay a 5% finder’s fee on a portion of the placement. Completion remains subject to regulatory approvals, including the Toronto Stock Exchange and customary closing conditions. Lucara anticipates closing in late January.
Related Party Participation
The Lundin Family Trusts, settled by the late Adolf H. Lundin, indicated their intention to subscribe up to $70 million to maintain or potentially increase their interest in Lucara. Nemesia S.a.r.I, a private entity controlled by the trusts, is the company’s largest shareholder. As such, participation by the trusts qualifies as a “related party transaction” under Canadian regulations. Lucara plans to rely on exemptions from formal valuation and minority shareholder approval requirements.
Strategic Impact
The upsized financing positions Lucara to continue development at Karowe without immediate need for additional equity, while leveraging strong support from its largest investors.