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Lucara Announces 24 Month Extension to HB Supply Agreement
Lucara Announces 24 Month Extension to HB Supply Agreement Canada NewsWire ...
About this update from Lucara Diamond Corp.
[{"type":"text","content":"\n \n \n \n Lucara Announces 24 Month Extension to HB Supply Agreement\n \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 \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n VANCOUVER, BC\n \n ,\n \n April 6, 2021\n \n /CNW/ - (TSX: LUC) (BSE: LUC) (Nasdaq Stockholm: LUC)\n \n \n Lucara Diamond Corp. (\"Lucara\" or the \"Company\") is pleased to announce that it has entered into a 24-month extension of its definitive supply agreement with HB Antwerp (\"HB\"), in respect of all diamonds produced in excess of 10.8 carats in size from its 100% owned Karowe Diamond Mine in\n \n Botswana\n \n .  Large, high value diamonds in excess of 10.8 carats in size account for approximately 70% of Lucara's annual revenues. Though the Karowe 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\n \n March 2020\n \n amidst the uncertainty caused by the global crisis.\n \n View PDF version\n \n \n \n Under the terms of this novel supply agreement with HB, extended to\n \n December 2022\n \n , the purchase price paid for each +10.8 carat rough diamond is 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.\n \n \n ADVANTAGES:\n \n \n \n Regular cash flow for Lucara using polished pricing mechanism;\n \n \n Potential revenue upside, particularly suited for Lucara's large, exceptional diamonds;\n \n \n Increased tax revenue and additional beneficiation opportunities for the Government of\n \n Botswana\n \n ; and\n \n \n A streamlined supply chain that achieves alignment between Lucara and HB to maximize the value of each +10.8 carat diamond produced at Karowe.\n \n \n \n Eira Thomas, CEO commented: \"The decision to sell our +10.8 carat rough diamonds under a committed supply agreement with HB beginning in July of 2020 has helped support prices for this critical segment of our production amidst pricing uncertainty caused b...