- Oversubscribed financing strengthens plans for Karowe’s underground expansion in Botswana
GAZETTE REPORTER
Lucara Diamond Corp., a Canada-listed diamond producer, has closed a previously announced non-brokered private placement that raised gross proceeds of 165.0 million Canadian dollars, the company said. The financing, first announced on January 9 and increased on January 14, 2026, was upsized following what Lucara described as strong investor demand.
The company operates the Karowe Diamond Mine in Botswana, which it owns outright and which is known for producing large, high-quality Type IIa diamonds.
Investor Demand
According to Lucara, the private placement was oversubscribed and attracted participation from institutional investors across several regions, as well as the Lundin Family Trusts. William Lamb, Lucara’s president and chief executive, said the response underscored confidence in the company’s plans.
“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,” Lamb said.
Share Issuance
Under the transaction, Lucara issued 1,031,250,000 common shares at a price of $0.16 per share, resulting in total gross proceeds of $165.0 million. The company paid a finder’s fee of $2.5 million to select firms, including BMO Nesbitt Burns Inc., Haywood Securities Inc., Leede Financial Inc., Canaccord Genuity Corp. and Pareto Securities AB. The fee did not apply to the Lundin Family Trusts’ participation.
All shares issued under the private placement are subject to a four-month statutory hold period in line with Canadian securities regulations.
Project Funding
Lucara said the proceeds will be used primarily to address a liquidity shortfall and to allow the company to continue advancing the Karowe Underground Project, while it seeks longer-term project financing. Planned uses include shaft equipping, conveyance commissioning, lateral development, extraction and drill horizon development, as well as general working capital and corporate purposes.
“This financing will enhance our ability to accelerate key developments on the Karowe Underground Project planned for 2026,” Lamb said.
The company said it expects full financing for the underground project to be achieved through a combination of operating cash flows, the private placement, additional debt financing and ongoing engagement with existing lenders. Lucara is also considering alternative debt options, including a potential bond issue, and has mandated Clarksons Securities AS and Pareto Securities AB as advisers.
Regulatory Approval
Lucara relied on a financial hardship exemption under Section 604(e) of the Toronto Stock Exchange Company Manual to complete the transaction without shareholder approval, an exemption that the exchange has accepted.