Finance facility for Karowe diamond mine in Botswana extended
Lucara Diamond Corp. has extended the maturity of its $50 million senior secured working capital facility (WCF) for the underground expansion of the Karowe diamond mine in Botswana.
The requirement to place $52.9 million in a cost overrun reserve account (CORA) has been deferred until discussions with lenders conclude on January 15, 2024. The debt package consists of two facilities: $170 million project finance facility for the underground Karowe Mine expansion and WCF for ongoing operations.
The Project Loan and WCF have drawn $90 million and $35 million, respectively. Lenders granted an extension, and discussions with them have been constructive, leading to proposed amendments to the company’s debt package. The lenders’ extension was set to expire on December 31, 2023.
Amendments
Lucara is collaborating with lenders to agree on $220 million in amendments to its project facilities, including waivers and extensions. Glenn Kondo returned as Lucara’s corporate secretary on January 1, 2024. Conservative estimates suggest the expansion could generate $4 billion in additional revenues. Lucara has informed the lenders about the anticipated schedule and cost increases for the Karowe UGP project.
Kondo’s expertise in the diamond industry and past roles are expected to contribute significantly to Lucara’s strategic financial planning and overall corporate success. The underground expansion of Karowe Mine is anticipated to extend the mine life to 2040.
