Lucara Addresses Underground Mine's Funding Shortfall

(IDEX Online) - Canadian miner Lucara has drawn $10m from its largest shareholder to address a funding shortfall, as it prepares for underground mining at Karowe, in Botswana.

Luxembourg-based Nemesia, which holds stakes in a number of mining companies, is making cash available from a $63m standby undertaking in exchange for shares.

Lucara needs the money primarily to fund capital expenditures and cover liquidity shortfalls related to the underground plan.

The company reported first quarter revenue for 2025 down 23 per cent to $30.3m, as heavy rainfall in January forced the company to process lower-grade stockpile material. It sold 72,871 carats, down 22 per cent year-on-year.

The delayed $683m underground project is designed to extend the life of the Karowe mine to at least 2040 and is expected to generate around $1.1 billion in cash flow in that time.

William Lamb, president and CEO of Lucara, said: "The decision to draw $10.0 million from the Standby Undertaking provided by our largest shareholder represents a prudent approach to maintaining our financial flexibility during the current period of ongoing UGP (underground project) capital expenditures."

Lucara also announced two recent notable recoveries at Karowe - a 1,019.85-carat non-gem diamond and a 37.42-carat near-gem pink Type IIa diamond (pictured).