Lucara Diamond Corp. has announced the postponement of its $50 million Working Capital Facility (WCF) and the $52.9 million Collateral Obligation Right Agreement (CORA) to November 15, 2023, or until the end of lender discussions. This decision extends a previous deadline set in August 2023.
The diamond mining company's debt package includes a $170 million project finance facility for the underground expansion of the Karowe Mine and the WCF to ensure continuity of operations. No further draws beyond the current $90 million and $35 million, respectively, are permitted.
As it stands, the balance on the CORA is at $18.4 million. Lucara must maintain a minimum cash balance of $10 million as part of its obligations.
In a show of support, Nemesia S.a.r.l., Lucara's principal shareholder, has extended its liquidity support guarantee of up to $15 million for the lenders until the new deadline without requiring any additional considerations. This act demonstrates Nemesia's continued commitment to Lucara's financial stability during this period.
The Toronto Stock Exchange (TSX) has given conditional approval for Nemesia's extension of liquidity support, further solidifying the company's financial position during these discussions.
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