TIDM0QUI
RNS Number : 6934G
Lucara Diamond Corp
17 November 2022
November 16, 2022
PRESS RELEASE
LUCARA DIAMOND CORP. ANNOUNCES EXTENDED DIAMOND SALES AGREEMENT
WITH HB
VANCOUVER, November 16, 2022 - (LUC - TSX, LUC - BSE, LUC -
Nasdaq Stockholm)
Lucara Diamond Corp. ("Lucara" or the "Company") is pleased to
announce today that it has entered into an extended diamond sales
agreement (the "Agreement") with Lucara Botswana (Proprietary)
Limited ("Lucara Botswana"), and HB Trading BV ("HB"), for the
purpose of selling +10.8 carat rough diamonds produced from
Lucara's Karowe mine until December 31, 2032. Lucara first
partnered with HB in 2020 to sell Karowe's large, high value
diamonds, which have historically accounted for approximately 60%
to 70% of Lucara's annual revenues. The Agreement extends this
arrangement for ten years.
Under the Agreement, Lucara's +10.8 carat production is sold at
prices based on the estimated polished outcome of each diamond,
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. The Agreement
is consistent with the terms of the previous arrangement with HB,
with refinements to more accurately reflect how the parties have
been working together.
The pricing mechanisms of the Agreement with HB results in
complete transparency within the value chain, creating important
alignment between all participants in the value chain, and
delivering regular cash flow at superior prices for this important
segment of our production profile.
Eira Thomas, CEO commented, "It has been more than two years
since Lucara initiated this transformational approach to sales of
its' highest value diamonds, working in collaboration with HB to
create alignment along the value chain, differentiating diamonds
from Karowe on the basis of provenance, excellence in manufacturing
and a commitment to complete transparency for all stakeholders. For
the first time in our ten-year history, we have insight on what
becomes of each and every +10.8 carat rough diamond produced from
our mine, participating in each step of the planning and
manufacturing process right through to the final polished sale. Not
only has this approach stabilized prices for our most valuable
production segment, it has demonstrably grown demand, a core
objective.
As one of the world's most important sources of large, high
value type IIa diamonds, our approach provides consumers with
complete confidence in the origin of their diamonds and full
insight on how our business is governed, delivering on our
commitments to industry leading, best practice in responsible
mining in Botswana."
Oded Mansori, Co-founder and CEO of HB Antwerp said, "Over the
past two years, we have fostered a close partnership with Lucara by
providing unprecedented insight into the diamond value chain, using
data and information to align interests and maximize positive
impact. The Lucara - HB agreement reflects the renewed commitment
of both companies to embrace a new approach to sourcing,
transforming, and distributing mineral resources - based on equity,
transparency, and sustainability, providing meaningful benefits to
all participants, including the people and communities of
Botswana."
Eira Thomas
President and Chief Executive Officer
Follow Lucara Diamond on Facebook, Twitter, Instagram, and
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ABOUT LUCARA
Lucara is a leading independent producer of large exceptional
quality Type IIa diamonds from its 100% owned Karowe Diamond Mine
in Botswana. The Karowe Mine has been in production since 2012 and
is the focus of the Company's operations and development
activities. Clara Diamond Solutions Limited Partnership ("Clara"),
a wholly-owned subsidiary of Lucara, has developed a secure,
digital sales platform that uses proprietary analytics together
with cloud and blockchain technologies to modernize the existing
diamond supply chain, driving efficiencies, unlocking value and
ensuring diamond provenance from mine to finger. Lucara has an
experienced board and management team with extensive diamond
development and operations expertise. Lucara and its subsidiaries
operate transparently and in accordance with international best
practices in the areas of sustainability, health and safety,
environment, and community relations. Lucara has adopted the IFC
Performance Standards and the World Bank Group's Environmental,
Health and Safety Guidelines for Mining (2007). Accordingly, the
development of the Karowe underground expansion project ("UGP")
adheres to the Equator Principles. Lucara is committed to upholding
high standards while striving to deliver long-term economic
benefits to Botswana and the communities in which the Company
operates.
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 November 16, 2022, at 2:00pm Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
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,
including in respect to the pricing performance under the
Agreement. These assumptions, opinion and estimates 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,
this release may contain forward looking information pertaining to
performance under the Agreement.
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 "Risks and Uncertainties" in
the Company's most recent Annual Information Form available at
http://www.sedar.com, as well as changes in general business and
economic conditions, changes in interest and foreign currency
rates, the supply and demand for, deliveries of and the level and
volatility of prices of rough diamonds, costs of power and diesel,
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.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Hannah Reynish, Investor Relations & Communications, +1 604
674 0272, info@lucaradiamond.com ;
Sweden, Robert Eriksson, Investor Relations & Public
Relations, +46 701 112615, reriksson@rive6.ch ;
UK Public Relations, Charles Vivian / Jos Simson, Tavistock, +44
778 855 4035, lucara@tavistock.co.uk
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END
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