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LUCARA ANNOUNCES EXTENSION OF WORKING CAPITAL FACILITY
LUCARA ANNOUNCES EXTENSION OF WORKING CAPITAL FACILITY Canada NewsWire VANC...
About this update from Lucara Diamond Corp.
[{"type":"text","content":"\n \n \n \n LUCARA ANNOUNCES EXTENSION OF WORKING CAPITAL FACILITY\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 \n VANCOUVER, BC\n \n \n ,\n \n \n Aug. 23, 2023\n \n \n /CNW/ - (TSX: LUC) (BSE: LUC) (Nasdaq Stockholm: LUC)\n \n Please view PDF version\n \n .\n \n \n Lucara Diamond Corp. (\"Lucara\" or the \"Company\") announces the short-term extension of the maturity of its\n \n $50 million\n \n senior secured working capital facility (the \"WCF\") and a deferral to\n \n November 1, 2023\n \n of the requirement to place\n \n $52.9 million\n \n in a cost overrun reserve account (the \"CORA\") by\n \n September 2, 2023\n \n . The CORA balance is currently\n \n $18.3 million\n \n . All currency figures are in U.S. Dollars, unless otherwise stated.\n \n \n The Company's debt package consists of two facilities (the \"Facilities\"), a project finance facility of\n \n $170 million\n \n to fund the development of an underground expansion at the Karowe Mine (the \"Project Loan\"), and the WCF which is used to support ongoing operations. Presently,\n \n $90 million\n \n is drawn from the Project Loan and\n \n $35 million\n \n is drawn from the WCF. The terms of the WCF extension to\n \n November 1, 2023\n \n , do not permit further draws.\n \n \n In connection with the WCF extension and the CORA deferral, both to\n \n November 1, 2023\n \n , the Company's largest shareholder, Nemesia S.a.r.l. (\"Nemesia\"), has agreed to provide a liquidity support guarantee in favour of the Lenders of up to\n \n $15.0 million\n \n in aggregate (\"Liquidity Guarantee\") to\n \n October 31, 2023\n \n , while discussions with the Lenders are ongoing. In return, the Company has agreed to issue a debenture (the \"Debenture\") to Nemesia to be drawn down if Nemesia is required to make a payment under the Liquidity Guarantee. In consideration for providing the Liquidity Guarantee, and subject to receipt of all required regulatory approvals, Lucara has agreed to issue 450,000 common shares as a fee upon execution of the Liquidity Guarantee and a further 45...