VANCOUVER, BC, Oct. 7, 2024
/PRNewswire/ -- (TSX: LUC) (BSE: LUC) (Nasdaq Stockholm:
LUC)
Lucara Diamond Corp. ("Lucara" or the "Company") today announces
the sales of its 100% interest in the Clara Rough Diamond Sales
Platform ("Clara") to its original founders, a group led by the HRA
Group of Companies and Eira Thomas ("Founders"). View PDF
version
Clara is a rough diamond digital marketplace that modernizes how
rough diamonds are sold, using technology to connect buyers and
sellers, driving economic efficiencies for buyers and sellers.
Clara enables verification technologies to efficiently integrate
provenance and traceability services by transacting individual
rough diamonds. This innovation addresses the industry's need for
improved standards of transparency and trust.
Under the terms of the definitive sale agreement, the Founders
will acquire 100% ownership of Lucara's interests in Clara
Diamond Solutions GP Inc., Clara Diamond Solutions Limited
Partnership, and Clara Diamond Solutions B.V., including all
intellectual property rights, commercial contracts, and operating
assets. The total consideration comprises approximately
US$3.0 million in cash at closing and
the return of 10,000,000 Lucara common shares initially issued as
partial consideration when Lucara originally acquired the Clara
platform in 2018, and the transfer of liabilities tied to sales
performance metrics or a change of control, amounting to a share
issuance obligation of 13,400,000 Lucara common shares.
Lucara will retain a 3% Net Profit Interest on Clara's net
earnings. The Company has also granted Clara a 5-year rough diamond
supply agreement for stones meeting the size and quality
specifications historically sold through the Clara platform. This
supply agreement may be terminated after the second anniversary or
as otherwise mutually agreed between the parties.
William Lamb, President and CEO
of Lucara commented, "The divestiture of Clara enables us to
intensify our strategic focus on maximizing returns and long-term
value creation at our world-class Karowe Diamond Mine in
Botswana. The Company's core
competencies and future growth reside in the successful execution
of the Karowe underground expansion project. While the Clara
platform provides an innovative digital channel for rough diamond
sales, the successful onboarding of other producers' rough
production required to scale the platform, remains unattainable
while the platform is owned by a pure-play diamond producer.
Lucara maintains its conviction, reinforced by our supply
agreement with Clara, that this technology will play an important
role in the shaping of a demand driven diamond sector."
Aaron Ariel, current Managing Director and original founder
of Clara says, "Nine years ago, while at our factory sorting
through a mountain of rough diamonds – many of which we didn't need
but were required purchases bundled inseparably with product needed
to fulfill urgent orders, we had a big idea for a technology that
could transform the global rough diamond market for everyone.
Today, we are excited about the opportunity to realize its full
potential, which remains largely unexplored. We believe it will
become the industry's premier global rough diamond marketplace. We
look forward to partnering with stakeholders throughout the supply
chain who share our vision for a healthier, more transparent, and,
last but certainly not least, a more profitable industry for all.
We would like to thank the Clara team who have worked so hard over
these past years building Clara and cannot wait to work together to
take it to the next level."
The effective transaction date is October
4, 2024, subject to customary closing conditions and
amendments.
On behalf of the Board,
William Lamb
President and Chief Executive Officer
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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. 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 is certified by the Responsible
Jewellery Council, complies with the Kimberley Process, and 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 HRA GROUP
The HRA Group is an international diamond services company that
brings innovation to both the upstream and downstream segments of
the diamond industry. The HRA Group is engaged in all segments of
the diamond supply chain from rough diamond trading to jewellery
retail. Headquartered in Vancouver,
Canada, its distribution of premium diamond product is
global, with customers in North
America, Europe,
Asia, Australia and New
Zealand. As the driving force behind Clara's original
vision, the Founders are poised to lead the platform into its next
phase of growth, unlocking unprecedented value for the global
diamond market.
ADDITIONAL INFORMATION
The information is information that Lucara is obliged to make
public pursuant to the EU Market Abuse Regulation. This information
was submitted for publication, through the agency of the contact
person set out above, on October 6,
2024 at 08:00 p.m. Pacific
Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking information
and forward-looking statements as defined in applicable securities
laws (collectively referred to as "forward-looking statements").
These statements relate to future events or our future performance.
All statements other than statements of historical fact are
forward-looking statements. These statements involve known and
unknown risks, uncertainties and other factors that may cause
actual results or events to differ materially from those
anticipated in such forward-looking statements. Forward-looking
statements in this news release include statements regarding the
timing of closing of the transaction and our expectation that the
transaction will close, the expected proceeds and returned shares
that we expect to record, our expectations regarding use of
proceeds and common shares, and the impact of the supply and market
demand for, and the price volatility of, rough and polished
diamonds.
These statements are based on a number of assumptions,
including, but not limited to, assumptions that the conditions to
closing will be satisfied or waived in a timely manner. Factors
that may cause actual results to vary include, but are not limited
to, unforeseen complications in satisfying all conditions to
closing. Forward-looking statements are made as of the date of this
news release and, except as required by law, Lucara undertakes no
obligation to update publicly or otherwise revise any
forward-looking statements. Further information concerning risks,
assumptions and uncertainties associated with these forward-looking
statements and our business can be found in our most recent Annual
Information Form and MD&A available at SEDAR+ at
www.sedarplus.ca.
For further information, please contact: Vancouver − 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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