Lucara Raises $31M to Expand Karowe

RAPAPORT... Lucara Diamond Corp. has sold shares in the company for $30.9 million, granting it extra funding to maintain and develop the Karowe mine in Botswana.A syndicate of investors led by BMO Capital Markets has agreed to purchase 29.4 million common sharesfor CAD 22 million ($17.9 million), Lucara said last week. They implemented the transaction on a "bought-deal" basis, meaning they have bought the entire offering and will resell it afterward. The miner has also given BMO the option to purchase an additional 15% of stock at the same price of CAD 0.75 ($0.61) per share. This opportunity exists for a period of 30 days following the closing of the public offering.In addition, Lucara has entered into a private agreement with Nemesia and other investors to sell them CAD 16 million ($13 million) in shares under the same terms as the public offering. Last year, Lucara spent $18.7 million to expand its Karowe deposit to underground mining, which will extend the mine's life until 2040.Both sales are subject to regulatory approval, and are expected to close on July 15, Lucara added.Image: The processing plant at the Karowe mine. (Lucara Diamond Corp.)