Lucara Diamond (TSX:LUC, LSE:LUC) has increased the size of its previously announced non-brokered private placement to CAD165mn ($121mn), citing strong investor demand as it advances development of the Karowe underground project (UGP) in Botswana.
The Canada-based diamond producer said the upsized financing reflects heightened market confidence in the long-term value of Karowe, one of the world’s highest-value diamond mines, and in Lucara’s underground expansion strategy.
Proceeds from the placement will be used primarily to fund construction of the Karowe UGP, which is designed to extend the mine’s life and unlock access to deeper, high-value diamond-bearing zones beneath the existing open pit.
Lucara has been developing the underground operation to sustain production as near-surface resources are depleted, with the UGP expected to deliver stable output and preserve the mine’s premium diamond profile.
The company has previously guided that the underground expansion will support the continued recovery of large, high-quality stones, reinforcing Karowe’s status as a globally significant diamond asset.
Botswana remains central to Lucara’s long-term strategy, with the government retaining a carried interest in the mine. Diamond revenues remain a key pillar of the country’s economy and foreign exchange earnings.
Lucara said further updates on construction progress and production timelines will be provided as development of the underground project advances.
The company operates Karowe under a mining licence granted by the Botswana government and has gained international recognition for recovering some of the world’s largest and highest-value diamonds from the deposit.
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