Lucara in Share Issue Ahead of Mine Purchase
December 02, 09
Lucara Diamond Corp. has made an agreement with a syndicate of agents, led by GMP Securities L.P., to issue on a "best efforts" private placement basis, up to 100 million shares at a price of C$1.00 (US$0.96) per share. Lucara has recently signed an agreement to buy the AK6 project in Botswana from De Beers. The proceeds from the issue will be held in escrow until the agreement is approved. The AK6 purchase is pending the approval of the government of Lucara intends to use the proceeds of the offering to fund the AK6 acquisition, ongoing exploration and development activity and for general corporate purposes. Lucara is an African focused diamond exploration and development company seeking to become a mid-tier diamond producer. It has operations in the Democratic Republic of Congo, Namibia and Lesotho. In September, Lucara was granted a diamond mining lease for the Mothae project in Lesotho after a bulk sample received a high valuation of $437 per carat