Lucara plans $70m capital raise to accelerate Karowe underground expansion
Lundin Family Trusts signal strong backing for Botswana diamond project as underground development gathers pace
Independent diamond producer Lucara Diamond Corp is preparing to raise at least $70 million through a private placement aimed at fast tracking the underground expansion of its flagship Karowe mine in Botswana, one of the world’s most prolific sources of large and high value diamonds.
The company plans to issue approximately 437.5 million shares at $0.16 each, strengthening its balance sheet while advancing critical infrastructure at the Karowe underground project UGP. The move comes as Lucara positions the mine for its next growth phase, with underground production expected to extend Karowe’s life and unlock further value from its orebody.
Strong shareholder backing underpins the proposed capital raise. Trusts settled by the late Adolf H Lundin, collectively referred to as the Lundin Family Trusts, have indicated their intention to participate in the placement in order to maintain and potentially increase their shareholding.
The trusts may subscribe for up to $70 million of the offering. Their controlled private entity, Nemesia, is currently Lucara’s largest shareholder, reinforcing long term alignment between the company and its key investors.
Lucara said the net proceeds will be directed primarily toward advancing the Karowe UGP. Planned expenditure includes shaft equipping, conveyance commissioning, lateral development, extraction and drill horizon development, alongside funding for general working capital and corporate purposes.
These activities are essential to keeping the underground project on schedule as the company targets key development milestones.
Beyond the private placement, Lucara expects the UGP to be fully financed through a combination of operating cash flows, equity funding, additional debt financing and continued engagement with its existing lenders. The miner is evaluating several debt options, including a potential bond issue, for which Clarksons Securities and Pareto Securities have been appointed as advisers.
“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,” comments Lucara president and CEO William Lamb.
With the Karowe underground project expected to underpin production growth and revenue stability over the long term, the latest financing initiative highlights Lucara’s confidence in the asset and its commitment to maintaining Botswana’s position as a leading global diamond producer.
