Canadian mining company Lucara Diamond announced that its board of directors has formally approved Botswana's $534 million Karowe expansion project.

According to the $220 million senior secured project financing debt package signed in July 2021, the approval was obtained after the financial closure and all the above conditions were met. Lucara Diamond said that the expansion project of its 100% owned Karowe diamond mine has now been fully financed.

The financing of the underground expansion project will be funded by a package of debt financing, cash generated during the underground construction of the Karowe open-pit mine, and equity financing totaling 41.4 million Canadian dollars (32.6 million U.S. dollars), which will end in July 2021. Zara Boldt, Chief Financial Officer and Company Secretary of Lucara Diamond, said: “We are pleased to complete this important milestone after signing the loan documents in mid-July. We would like to thank our lenders and consultants for their efforts to achieve the financial closure of the facility. ."

The Karowe Diamond Mine went into full production in 2012 and will continue to conduct open-pit mining operations until 2026. It is estimated that by 2040, the mine will have further underground mining potential. The underground expansion project will involve a five-year development plan. The first batch of ore from the Karowe expansion project is planned to be mined in 2026.

Lucara Diamond said that since the signing of the debt package financing document in July, it has stepped up the construction of the project. Canadian miners have begun pre-sinking the ventilation shaft and completed the first set of cover holes. The company said that at present, the depth of the ventilation shaft under the collar is close to 17m.

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At the same time, Lucara Diamond has begun to mobilize the remaining pre-sinking equipment and contractor sites. The company stated that the civil works related to the remaining ventilation and production shaft infrastructure are progressing well. It also stated that the transfer of the temporary generator and the civil works related to the generator pad have been completed.Editor/Baohongying