Lucara targets $70 million private placement for Botswana’s Karowe expansion

At a Glance

• Lucara seeks $70 million equity raise to accelerate Karowe underground expansion in Botswana.
• Lundin Family Trusts anchor private placement, signaling strong confidence in high-value diamond assets.
• Karowe expansion targets longer mine life and access to deeper, premium diamond ore zones.

Lucara Diamond Corp., the Canadian diamond miner behind Botswana’s flagship Karowe mine, is seeking to raise at least $70 million in fresh equity as it accelerates development of the Karowe Underground Project (UGP), one of Africa’s most closely watched mining expansions.

The private placement underscores rising investor appetite for high-value diamond assets, amid tightening global supply and renewed demand for large, premium stones.

The company plans to issue about 437.5 million shares at $0.16 apiece, with cornerstone backing from the Lundin Family Trusts, long-time strategic investors in Lucara. 

Trusts settled by the late Adolf H. Lundin have signaled their intention to subscribe for up to the full $70 million, potentially increasing their ownership stake. Nemesia, a private entity controlled by the Lundin Family Trusts, is currently Lucara’s largest shareholder.

Funding Karowe’s next growth phase

Lucara said proceeds from the equity raise will be directed primarily toward advancing the Karowe UGP, including shaft equipping, conveyance commissioning, lateral development, and the establishment of extraction and drill horizons. 

Funds will also support working capital and general corporate purposes, as the company positions the mine for sustained long-term production.

The Karowe underground expansion is central to Lucara’s growth strategy, extending mine life and enabling access to deeper, high-value ore zones known for producing exceptional Type IIa diamonds, a category prized for rarity, size, and clarity.

Blended financing strategy takes shape
Lucara, currently the 16th most valuable stock on the Botswana Stock Exchange equity market with a market capitalization of BWP 2.05 billion ($151.94 million), expects to fully finance the UGP through a mix of operating cash flows, equity proceeds, and additional debt financing, while continuing discussions with existing lenders to close any remaining funding gaps. 

The company is also evaluating bond market options, having appointed Clarksons Securities and Pareto Securities as advisers on a potential debt issuance.

“We are pleased to advance this equity raise with the support of the Lundin Family Trusts, whose participation underscores the strategic significance of the Karowe UGP,” said President and CEO William Lamb. “This financing enhances our ability to accelerate key development milestones targeted for 2026.”

A global benchmark for large diamonds

Lucara’s 100%-owned Karowe mine is widely regarded as one of the world’s most prolific sources of large, high-quality diamonds. 

The operation has yielded some of the most celebrated stones in modern history, including the 1,758-carat Sewelô, the 1,109-carat Lesedi La Rona, and the 813-carat Constellation, which sold for a record $63.1 million.

Recently, the company recovered the 2,488-carat Motswedi, ranking among the largest rough diamonds ever discovered. 

In Q3 2025, Lucara sold 101,422 carats, generating $51.2 million in revenue. The year also marked the recovery of its ninth diamond exceeding 1,000 carats from Karowe—and the third such find in 2025.

Lucara is listed on the Toronto Stock Exchange, Nasdaq First North Growth Market, and the Botswana Stock Exchange under the ticker LUC, reinforcing Botswana’s position as a cornerstone of Africa’s high-value mining economy.