Karowe boost as Lucara renews P440m facility :: Mmegi Online

The precious gem producer Lucara Diamond Corporation has renewed its revolving term credit facility with the Bank of Nova Scotia (Scotiabank) for a three-year term and increased the limit to $50-million (P440 million), giving it improved financial flexibility. The facility, which would be a major boost for its flagship Karowe Diamond Mine in Boteti, would contain financial and non-financial covenants customary for a facility of this size and nature.

In a statement Lucara said that the applicable interest rate of any loan under the facility would be determined by the company’s leverage ratio at any given time.

“We are delighted with the continued demonstration of Scotiabank’s support of our business plan and strategy. While Lucara continues its strong cash flow generation the credit facility provides for future risk mitigation and allows the company to react quickly to potential growth investment opportunities,” Lucara president and chief executive officer, William Lamb said. Lucara’s two assets are the active Karowe mine, in Botswana, and the Mothae project, in Lesotho, where the company had completed a trial mining programme.

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