Lucara Diamond extends $50 million working capital facility

Chicago, Aug. 23 – Lucara Diamond Corp. received a short-term extension of the maturity of its $50 million senior secured working capital facility and also a deferral to Nov. 1 for the requirement to place $52.9 million in a cost overrun reserve account by Sept. 2.

The cost overrun account balance is currently $18.2 million.

The total project finance facility consist of a $170 million project loan and the working capital facility.

Presently, $90 million is drawn on the project loan and $35 million is outstanding on the working capital facility.

The extension freezes further draws.

The company’s largest shareholder Nemesia Sarl provided a liquidity support guarantee in favor of the lenders for up to $15 million in aggregate to Oct. 31 while discussions with lenders are ongoing.

In return, the company issued a debenture to Nemesia to be drawn if Nemesia has to make a payment because of the guarantee.

Nemesia may also receive set amounts of shares for certain events if the liquidity guarantee is utilized.

Lucara is a diamond explorer based in Vancouver, B.C.

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