The Company's debt package consists of two facilities, a project finance facility of
Key terms of the Project Loan:
- Up to
$190 million provided to fund the development, construction costs and construction phase operating costs of the UGP as well as financing costs in relation to the Facilities; - 8 year maturity, to
June 30, 2031 , with quarterly repayments commencing onSeptember 30, 2028 ; - Interest rate and Margin: LIBOR (or replacement benchmark) plus margin of 6.5% annually from Rebase Date to the Project Completion, 6.0% annually from Project Completion to
June 30, 2029 , and 7.0% annually thereafter; - Commitment Fee: Lucara Botswana to pay 35% of the Margin per annum applicable to the Project Loan Facility on the Available Commitment for the Project Loan Facility;
- CORA: Amount of
$61.7 million to be funded byJune 30, 2025 ; - First ranking security over all assets of the Borrower on a fixed and floating basis, as well as all shares in and shareholder loans into the Borrower and all shares in and shareholder loans into the intermediary companies between the Sponsor and the Borrower;
- The project facility will require interest rate hedging of at least 75% of the Borrower's exposure to be arranged as a condition subsequent to Financial Close;
- Positive and negative covenants, including financial ratios, as well as events of default and a cash flow waterfall customary to a financing of this nature are set out in the amended Facilities agreement.
Key terms of the WCF:
- Up to
$30 million for a senior, secured WCF for working capital and other corporate purposes of the Borrower; - Interest rate and Margin: LIBOR (or replacement benchmark) plus margin of 6.5% annually for the period commencing from the date of the amendment to Projection Completion, 6.25% from Project Completion to
June 30, 2029 , and 7.25% annually thereafter; - Commitment Fee: Lucara Botswana to pay 35% of the Margin per annum applicable to the Working Capital Facility on the Available Commitment for the Working Capital Facility.
Shareholder Undertaking from
In connection with the amended Facilities, the Company's largest shareholder, Nemesia S.a.r.l. ("Nemesia"), has agreed to enter into a shareholder guarantee and an amendment to the shareholder standby undertaking, in favor of the Lenders of up to
A material change report in respect of the signing of the loan documentation in relation to the amended Facilities, including the provision of the Shareholder Guarantees, will be filed in accordance with MI 61-101, but is not expected to be filed 21 days in advance of the closing of the Facilities as the Company wanted to close the Facilities on an expedited basis for sound business reasons.
On behalf of the Board,
President and Chief Executive Officer
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Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned
The information is information that Lucara is obliged to make public pursuant to the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information was submitted for publication, through the agency of the contact person set out above, on
Certain of the statements made and contained herein and elsewhere constitute forward-looking statements as defined in applicable securities laws. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as "expects", "anticipates", "believes", "intends", "estimates", "potential", "possible" and similar expressions, or statements that events, conditions or results "will", "may", "could" or "should" occur or be achieved.
Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to a number of known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The Company believes that expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be accurate and such forward-looking information included herein should not be unduly relied upon.
In particular, forward-looking information and forward-looking statements in this news release may include, but are not limited to, expectations regarding the funds to be used for the development of the UGP; the ultimate use of proceeds from the Facilities and the use of the Shareholder Guarantees; receipt of regulatory approvals for the issuance of common shares to
There can be no assurance that such forward looking statements will prove to be accurate, as the Company's results and future events could differ materially from those anticipated in this forward-looking information as a result of those factors discussed in or referred to under the heading "COVID-19 Global Pandemic, Economic and Geopolitical Risks" in the Company's most recent MD&A and under the heading "Risks and Uncertainties" in the Company's most recent Annual Information Form, both available at http://www.sedarplus.com, as well as changes in general business and economic conditions, the ability to continue as a going concern, changes in interest and foreign currency rates, changes in inflation, the supply and demand for, deliveries of and the level and volatility of prices of rough diamonds, costs of power and diesel, impacts of potential disruptions to supply chains, acts of foreign governments and the outcome of legal proceedings, inaccurate geological and recoverability assumptions (including with respect to the size, grade and recoverability of mineral reserves and resources), and unanticipated operational difficulties (including failure of plant, equipment or processes to operate in accordance with specifications or expectations, cost escalations, unavailability of materials and equipment, government action or delays in the receipt of government approvals, industrial disturbances or other job actions, adverse weather conditions, and unanticipated events relating to health safety and environmental matters).
Accordingly, readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date the statements were made, and the Company does not assume any obligations to update or revise them to reflect new events or circumstances, except as required by law.
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