REG - Lucara Diamond Corp - LUCARA ANNOUNCES DIAMOND SALES AGREEMENT WITH HB

Lucara DiamondAnnouncement

19/02/2024 07:00

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RNS Number : 5809D  Lucara Diamond Corp  19 February 2024

February 18, 2024

 

 

NEWS RELEASE

 

LUCARA ANNOUNCES A NEW MULTI-YEAR DIAMOND SALES AGREEMENT WITH HB ANTWERP

 

VANCOUVER, February 18, 2024 /CNW/ (LUC - TSX, LUC - BSE, LUC - Nasdaq
Stockholm)

 

Lucara Diamond Corp. ("Lucara" or the "Company") is pleased to announce that
it has entered into a new diamond sales agreement ("NDSA") with HB Group out
of Antwerp, Belgium ("HB"), in respect of all qualifying diamonds produced
in excess of 10.8 carats in size from its 100% owned Karowe Diamond Mine
in Botswana.

Under the terms of the 10-year NDSA with HB, the purchase price paid for
Lucara's +10.8 carat rough diamonds shall be based on the mutual agreement of
the estimated polished outcome, determined through state-of-the-art scanning
and planning technology, together with external benchmarks and more than a
decade of Lucara's special stone sales data. A further sales value uplift
("top-up") will be paid to Lucara based on actual achieved polished sales
thereafter, less a fixed margin payable to HB. This pricing mechanism is
expected to deliver regular cash flow for this important segment of the
Company's production profile at better than conventional diamond industry
tender prices.

The anticipated benefits of the NDSA to Lucara include:

·     Regular cashflow to Lucara in support of the ongoing development
of the Karowe Underground Project.

·   Significant potential revenue upside, especially for large complex
rough diamonds, based on historical performance, providing a premium on
diamond sales benefiting all Karowe Mine stakeholders.

·     Ongoing alignment with the Government of Botswana's strategy to
diversify downstream, and participate in the upside of polished diamond
revenue.

·      Streamlined diamond evaluation, sales reporting and payment
mechanisms.

·    The creation of an efficient and restructured, large and high quality
diamond supply chain which has the potential of meeting the demands of
high-value brands

The NDSA is subject to the approval of the Company's project lenders. Upon
such approval the agreement terms will be effective retroactively from
December 1, 2023. Since that time, Lucara has continued to supply qualifying
rough diamonds to HB in order to fund its operations and the Karowe
Underground Project.

 

William Lamb, President & CEO commented: "As we navigate through the
ever-evolving landscape of the diamond industry, I'm pleased to announce
Lucara's strategic decision to re-enter into a long-term supply agreement with
HB Antwerp. This partnership reflects our commitment to ensuring stability and
sustainability in our operations. Our collaboration with HB Antwerp presents
an opportunity to further enhance our position in the market, building on the
knowledge of the past and the understanding of the quality of the polished
diamonds produced from our Karowe diamonds. We remain steadfast in our
dedication to delivering exceptional quality and premium value from our
diamonds to all stakeholders, even amidst external pressures. Together, we
will continue to uphold the legacy of excellence that defines Lucara's journey
in the world of diamonds".

 

 

On behalf of the Board,

 

William Lamb

President and Chief Executive Officer

 

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For further information, please contact:

 

 Hannah Reynish       Investor Relations & Communications
                      +1 604 674 0272| info@lucaradiamond.com (mailto:info@lucaradiamond.com)

 Sweden               Robert Eriksson, Investor Relations & Public Relations
                      +46 701 112615 | reriksson@rive6.ch (mailto:reriksson@rive6.ch)

 UK Public Relations  Charles Vivian / Jos Simson, Tavistock
                      +44 778 855 4035 | lucara@tavistock.co.uk (mailto:lucara@tavistock.co.uk)

 

ABOUT LUCARA

Lucara is a leading independent producer of large exceptional quality Type IIa
diamonds from its 100% owned Karowe Diamond Mine in Botswana. The Karowe Mine
has been in production since 2012 and is the focus of the Company's operations
and development activities. Clara Diamond Solutions Limited Partnership
("Clara"), a wholly-owned subsidiary of Lucara, has developed a secure,
digital sales platform which ensures diamond provenance from mine to finger.
Lucara has an experienced board and management team with extensive diamond
development and operations expertise. Lucara and its subsidiaries operate
transparently and in accordance with international best practices in the areas
of sustainability, health and safety, environment, and community relations.
Lucara has adopted the IFC Performance Standards and the World Bank Group's
Environmental, Health and Safety Guidelines for Mining (2007). Accordingly,
the development of the Karowe Underground Project adheres to the Equator
Principles. Lucara is committed to upholding high standards while striving to
deliver long-term economic benefits to Botswana and the communities in which
the Company operates.

 

ABOUT HB ANTWERP

HB Antwerp turns the diamond supply chain upside down starting with the
customer. Using technology, they bring simplicity and transparency to a
typically complex supply chain. Everything happens in a closed loop called
Signum in Antwerp, backed with the latest technologies and tracked with
blockchain making it 100% transparent from diamond mine to market.

 

The information is information that Lucara is obliged to make public pursuant
to the EU Market Abuse Regulation and the Swedish Securities Markets Act. This
information was submitted for publication, through the agency of the contact
person set out above, on February 18, 2024 at 7:00 p.m. Pacific Time.

CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS

Certain of the statements made herein contain certain "forward-looking
information" and "forward-looking statements" as defined in applicable
securities laws. Generally, any statements that express or involve discussions
with respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions or future events or performance and often (but not
always) using forward-looking terminology such as "expects", "is expected",
"anticipates", "believes", "plans", "projects", "estimates", "budgets",
"scheduled", "forecasts", "assumes", "intends", "strategy", "goals",
"objectives", "potential", "possible" or variations thereof or stating that
certain actions, events, conditions or results "may", "could", "would",
"should", "might" or "will" be taken, occur or be achieved, or the negative of
any of these terms and similar expressions) are not statements of historical
fact and may be forward-looking statements.

In particular, forward-looking information and forward-looking statements may
include, but are not limited to, information or statements with respect to the
anticipated benefits of the Diamond Sales Agreement, including the ability to
achieve regular cash flows and the ability to achieve better pricing than
available through tender.

Forward-looking information and statements are based on the opinions and
estimates of management as of the date such statements are made, and they are
subject to several known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of the Company
to be materially different from any future results, performance or achievement
expressed or implied by such forward-looking statements, including risks
related to changes in the market for diamond sales. The Company believes that
expectations reflected in this forward-looking information are reasonable, but
no assurance can be given that these expectations will prove to be correct.
Certain risks which could impact the Company and its performance under the
Diamond Sales Agreement are discussed under the heading "Risks and
Uncertainties" in the Company's most recently filed Interim MD&A and, in
the Company's most recent Annual Information Form available at
http://www.sedar.com (the "AIF").

The foregoing is not exhaustive of the factors that may affect any of our
forward-looking statements. Forward-looking statements are statements about
the future and are inherently uncertain, and our actual achievements or other
future events or conditions may differ materially from those reflected in the
forward-looking statements due to a variety of risks, uncertainties, and other
factors, including, without limitation, those referred to in this news
release.

Although the Company has attempted to identify important factors that could
cause actual actions, events, or results to differ materially from those
described in forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or intended.
The forward-looking statements contained in this news release are based on the
beliefs, expectations, and opinions of management as of the date of this
disclosure. There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly, readers and
investors should not place undue reliance on forward-looking statements.
Forward-looking information and statements are made as of the date of this
disclosure and accordingly are subject to change after such date. Except as
required by law, the Company disclaims any obligation to revise any
forward-looking information and statements to reflect events or circumstances
after the date of such information and statements. All forward-looking
information and statements contained or incorporated by reference in this news
release are qualified by the foregoing cautionary statements.

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