Lucara Diamond seals credit approved $220m package for Karowe Mine expansion
Lucara Diamond has received credit approved commitments from a syndicate of five mandated lead arrangers for a senior secured project financing debt package of up to $220 million to fund the underground expansion at its 100%-owned Karowe Mine, in Botswana.
The MLAs are ING Bank; Natixis; Societe Generale, London Branch; Africa Finance Corporation; and Afreximbank. The facilities will include two tranches: A project finance facility of $170 million to fund the development of the underground project, and a working capital facility of $50 million to support the on-going operation of the Karowe open pit mine. Financial closing of the facilities is subject to satisfactory completion of definitive documentation, and satisfaction of certain terms and conditions, including appropriate KYC checks.
Eira Thomas, President and CEO of Lucara, said: "This debt package will supplement cash flows from continued operations of the open pit over the next five years, extending Karowe's mine-life out from 2025 until at least 2040."
Additionally, Lucara also extened its current working capital facility of $50 million with Rand Merchant Bank, a division of FirstRand Bank Limited, London Branch. The current facility is expected to be extinguished when the project financing debt package achieves financial close Terrafranca Advisory Limited is acting as financial advisor to the company. Norton Rose Fulbright is acting as legal counsel to the company.
