Lucara Diamond Corp. announced that it has signed amended documentation in relation to the senior secured project financing debt package of $220 million (the "Facilities") executed in July 2021. While the total quantum of the Facilities has not changed, the repayment profile has been extended in line with the rebase schedule released July 17, 2023 (link).

Lucara expects to continue to develop the Karowe underground expansion (the "UGP") using funds from the Project Loan (as hereinafter defined), combined with projected excess cash flow from Karowe open pit mine operations and stockpiles processed during the underground construction period. Parties to the Facilities remain Lucara Botswana Proprietary Limited ("Lucara Botswana") as the Borrower and a syndicate of five international financial institutions: African Export-Import Bank (Afreximbank), Africa Finance Corp., ING, Natixis, and Societe Generale, London Branch. Afreximbank acts as Facility Agent in connection with the Facilities.

The Company's debt package consists of two facilities, a project finance facility of $190 million (previously $170 million) to fund the development of an UGP at the Karowe Mine (the "Project Loan"), and a $30 million (previously $50 million) senior secured working capital facility (the "WCF") which is used to support ongoing operations. The Company has drawn $125 million from the Project Loan and $15 million from the WCF. The balance in the cost overrun reserve account (the "CORA") stands at $33.6 million.

All currency figures are in U.S. Dollars, unless otherwise stated. Key terms of the Project Loan: Up to $190 million provided to fund the development, construction costs and construction phase operating costs of the UGP as well as financing costs in relation to the Facilities; 8 year maturity, to June 30, 2031, with quarterly repayments commencing on September 30, 2028; Interest rate and Margin: LIBOR (or replacement benchmark) plus margin of 6.5% annually from Rebase Date to the Project Completion, 6.0% annually from Project Completion to June 30, 2029, and 7.0% annually thereafter; Commitment Fee: Lucara Botswana to pay 35% of the Margin per annum applicable to the Project Loan Facility on the Available Commitment for the Project Loan Facility; CORA: Amount of $61.7 million to be funded by June 30, 2025; First ranking security over all assets of the Borrower on a fixed and floating basis, as well as all shares in and shareholder loans into the Borrower and all shares in and shareholder loans into the intermediary companies between the Sponsor and the Borrower; The project facility will require interest rate hedging of at least 75% of the Borrower's exposure to be arranged as a condition subsequent to Financial Close; Positive and negative covenants, including financial ratios, as well as events of default and a cash flow waterfall customary to a financing of this nature are set out in the amended Facilities agreement. Key terms of the WCF: Up to $30 million for a senior, secured WCF for working capital and other corporate purposes of the Borrower; Interest rate and Margin: LIBOR (or replacement benchmark) plus margin of 6.5% annually for the period commencing from the date of the amendment to Projection Completion, 6.25% from Project Completion to June 30, 2029, and 7.25% annually thereafter; Commitment Fee: Lucara Botswana to pay 35% of the Margin per annum applicable to the Working Capital Facility on the Available Commitment for the Working Capital Facility.