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Lucara and HB Announce Groundbreaking Partnership for 2020
Lucara and HB Announce Groundbreaking Partnership for 2020 Canada NewsWire VANCO...
About this update from Lucara Diamond Corp.
[{"type":"text","content":"\n\n\n\nLucara and HB Announce Groundbreaking Partnership for 2020\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n.prntac{\nTEXT-ALIGN: CENTER\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, BC, July 15, 2020\n\n\n\nSales Agreement for All +10.8 Carat Rough Diamonds Through FY2020\n VANCOUVER, BC, July 15, 2020 /CNW/ - (LUC – TSX, LUC – BSE, LUC – Nasdaq Stockholm)\n\n \n \n\n\n\n\n\n\n\n \nPlease view PDF version\nLucara Diamond Corp. (\"Lucara\" or the \"Company\") is pleased to announce that it has entered into a definitive supply agreement for the remainder of 2020 with HB Group out of Antwerp, Belgium (\"HB\"), in respect of all diamonds produced in excess of 10.8 carats in size from its 100% owned Karowe Diamond Mine in Botswana. Large, high value diamonds in excess of 10.8 carats in size from Karowe account for approximately 70% of Lucara's annual revenues, and though the mine has remained fully operational throughout the Covid-19 pandemic, Lucara made a deliberate decision not to tender any of its +10.8 carat inventory after early March 2020 amidst the uncertainty caused by the global crisis.\nUnder the terms of this novel supply agreement with HB, the purchase price paid for Lucara's +10.8 carat rough diamonds shall be based on the estimated polished outcome, determined through state of the art scanning and planning technology, with a true up paid on actual achieved polished sales thereafter, less a fee and the cost of manufacturing. This unique pricing mechanism is expected to deliver regular cash flow for this important segment of our production profile at superior prices.\nADVANTAGES:\nRegular cash flow for Lucara using a superior pricing mechanismSignificant potential revenue upside, particularly suited for Lucara's large, exceptional diamondsIncreased tax revenue and additional beneficiation opportunities for the Government of BotswanaThe creation of a more efficient, streamlined, supply chain that achieves complete alignment between Lucara and HB to maximize the value of each +10.8 carat diamond produced at Karowe Eira Thomas, CEO commented: \...