February 18, 2024
NEWS RELEASE
LUCARA ANNOUNCES A NEW MULTI-YEAR
DIAMOND SALES AGREEMENT WITH HB ANTWERP
VANCOUVER, February 18, 2024 /CNW/
(LUC - TSX, LUC - BSE, LUC - Nasdaq Stockholm)
Lucara Diamond Corp. ("Lucara" or
the "Company") is pleased to announce that it has entered into a
new diamond sales agreement ("NDSA") with HB Group out
of Antwerp,
Belgium ("HB"), in respect of all
qualifying diamonds produced in excess of 10.8 carats in size from
its 100% owned Karowe Diamond Mine
in Botswana.
Under the terms of the 10-year NDSA
with HB, the purchase price paid for Lucara's +10.8 carat rough
diamonds shall be based on the mutual agreement of the estimated
polished outcome, determined through state-of-the-art scanning and
planning technology, together with external benchmarks and more
than a decade of Lucara's special stone sales data. A further sales
value uplift ("top-up") will be paid to Lucara based on actual
achieved polished sales thereafter, less a fixed margin payable to
HB. This pricing mechanism is expected to deliver regular cash flow
for this important segment of the Company's production profile at
better than conventional diamond industry tender prices.
The anticipated benefits of the NDSA
to Lucara include:
· Regular
cashflow to Lucara in support of the ongoing development of the
Karowe Underground Project.
· Significant
potential revenue upside, especially for large complex rough
diamonds, based on historical performance, providing a premium on
diamond sales benefiting all Karowe Mine stakeholders.
· Ongoing alignment with the Government of Botswana's strategy
to diversify downstream, and participate in the upside of polished
diamond revenue.
· Streamlined diamond evaluation, sales reporting and payment
mechanisms.
· The creation of an efficient and restructured, large and high
quality diamond supply chain which has the potential of meeting the
demands of high-value brands
The NDSA is subject to the approval
of the Company's project lenders. Upon such approval the agreement
terms will be effective retroactively from December 1, 2023. Since
that time, Lucara has continued to supply qualifying rough diamonds
to HB in order to fund its operations and the Karowe Underground
Project.
William Lamb, President & CEO
commented: "As we navigate through the ever-evolving landscape of
the diamond industry, I'm pleased to announce Lucara's strategic
decision to re-enter into a long-term supply agreement with HB
Antwerp. This partnership reflects our commitment to ensuring
stability and sustainability in our operations. Our collaboration
with HB Antwerp presents an opportunity to further enhance our
position in the market, building on the knowledge of the past and
the understanding of the quality of the polished diamonds produced
from our Karowe diamonds. We remain steadfast in our dedication to
delivering exceptional quality and premium value from our diamonds
to all stakeholders, even amidst external pressures. Together, we
will continue to uphold the legacy of excellence that defines
Lucara's journey in the world of diamonds".
On
behalf of the Board,
William Lamb
President and Chief Executive
Officer
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ABOUT LUCARA
Lucara is a leading independent
producer of large exceptional quality Type IIa diamonds from its
100% owned Karowe Diamond Mine in Botswana. The Karowe Mine has
been in production since 2012 and is the focus of the Company's
operations and development activities. Clara Diamond Solutions
Limited Partnership ("Clara"), a wholly-owned subsidiary of Lucara,
has developed a secure, digital sales platform which ensures
diamond provenance from mine to finger. Lucara has an
experienced board and management team with extensive diamond
development and operations expertise. Lucara and its subsidiaries
operate transparently and in accordance with international best
practices in the areas of sustainability, health and safety,
environment, and community relations. Lucara has adopted the
IFC Performance Standards and the World Bank Group's Environmental,
Health and Safety Guidelines for Mining (2007). Accordingly, the
development of the Karowe Underground Project adheres to the
Equator Principles. Lucara is committed to upholding high standards
while striving to deliver long-term economic benefits to Botswana
and the communities in which the Company operates.
ABOUT
HB ANTWERP
HB Antwerp turns the diamond supply chain upside down
starting with the customer. Using technology, they bring simplicity
and transparency to a typically complex supply chain. Everything
happens in a closed loop called Signum in Antwerp, backed with
the latest technologies and tracked with blockchain making it 100%
transparent from diamond mine to market.
The information is information that
Lucara is obliged to make public pursuant to the EU Market Abuse
Regulation and the Swedish Securities Markets Act. This information
was submitted for publication, through the agency of the contact
person set out above, on February 18, 2024 at 7:00 p.m. Pacific
Time.
CAUTIONARY NOTE REGARDING FORWARD
LOOKING STATEMENTS
Certain of the statements made
herein contain certain "forward-looking information" and
"forward-looking statements" as defined in applicable securities
laws. Generally, any statements that express or involve discussions
with respect to predictions, expectations, beliefs, plans,
projections, objectives, assumptions or future events or
performance and often (but not always) using forward-looking
terminology such as "expects", "is expected", "anticipates",
"believes", "plans", "projects", "estimates", "budgets",
"scheduled", "forecasts", "assumes", "intends", "strategy",
"goals", "objectives", "potential", "possible" or variations
thereof or stating that certain actions, events, conditions or
results "may", "could", "would", "should", "might" or "will" be
taken, occur or be achieved, or the negative of any of these terms
and similar expressions) are not statements of historical fact and
may be forward-looking statements.
In particular, forward-looking
information and forward-looking statements may include, but are not
limited to, information or statements with respect to the
anticipated benefits of the Diamond Sales Agreement, including the
ability to achieve regular cash flows and the ability to achieve
better pricing than available through tender.
Forward-looking information and
statements are based on the opinions and estimates of management as
of the date such statements are made, and they are subject to
several known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
the Company to be materially different from any future results,
performance or achievement expressed or implied by such
forward-looking statements, including risks related to changes in
the market for diamond sales. The Company believes that
expectations reflected in this forward-looking information are
reasonable, but no assurance can be given that these expectations
will prove to be correct. Certain risks which could impact
the Company and its performance under the Diamond Sales Agreement
are discussed under the heading "Risks and Uncertainties" in the
Company's most recently filed Interim MD&A and, in the
Company's most recent Annual Information Form available at
http://www.sedar.com (the "AIF").
The foregoing is not exhaustive of
the factors that may affect any of our forward-looking statements.
Forward-looking statements are statements about the future and are
inherently uncertain, and our actual achievements or other future
events or conditions may differ materially from those reflected in
the forward-looking statements due to a variety of risks,
uncertainties, and other factors, including, without limitation,
those referred to in this news release.
Although the Company has attempted
to identify important factors that could cause actual actions,
events, or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. The forward-looking statements contained in this news
release are based on the beliefs, expectations, and opinions of
management as of the date of this disclosure. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers and investors should not place undue reliance on
forward-looking statements. Forward-looking information and
statements are made as of the date of this disclosure and
accordingly are subject to change after such date. Except as
required by law, the Company disclaims any obligation to revise any
forward-looking information and statements to reflect events or
circumstances after the date of such information and statements.
All forward-looking information and statements contained or
incorporated by reference in this news release are qualified by the
foregoing cautionary statements.