Canadian diamond miner Lucara Diamond has announced it secured funds of up to US$220 million to finance the underground expansion at its Karowe mine in Botswana.
“The Facilities will include two tranches: A project finance facility of US$170 million to fund the development of the underground project, and a working capital facility of US$50 million to support the on-going operation of the Karowe open pit mine,” the company said in a state-ment.
“This debt package will supplement cash flows from continued oper-ations of the open pit over the next 5 years, extending Karowe's mine-life out from 2025 until at least 2040,” said Eira Thomas, the president and chief executive of the Canadian business.
Lucara Diamond says the Karowe mine is one of the world’s foremost producers of large, high quality, Type IIA diamonds in excess of 10.8 carats.