Lucara approves $514M Karowe mine expansion

Lucara Diamond (TSX: LUC) has announced that its board has formally accepted a planned underground expansion of the Karowe mine in Botswana, which is expected to extend the operation's life for 20 years - until 2040.

The Vancouver-based miner said the approval follows the financial closure and satisfaction of all conditions precedent to a US$220 million debt package, announced in July.

Lucara said the first US$170 million would be available in mid-September, adding that total costs will be largely covered via a combination of loans, cash resources and equity financing.

Moving Karowe underground will allow Lucara to exploit the highest value part of the orebody first, generating over US$5.25 billion in gross revenue, president and CEO Eira Thomas has said.

The company noted that construction efforts had ramped up since the facilities' documentation was executed in mid-July.

The pre-sinking of ventilation is underway and a total of four blasts have occurred to date with continued drilling, mucking, and installation of ground support on a 24-hour basis.

The company is mobilizing the remaining pre-sinking equipment and contractors.

Lucara says Karowe remains one of the highest-margin diamond mines in the world, producing an average of 300,000 high-value carats each year.

The mine, which began commercial operations in 2012, has already become the only one in recorded history to have yielded two 1,000+ carat diamonds - the 1,758 carat Sewel?? in 2019 and the 1,109 carat Lesedi La Rona in 2015, which sold for US$53 million.