Lucara's Deal with HB Antwerp is Back On
February 19, 24
(IDEX Online) - Lucara's on-off deal for HB Antwerp to sell its specials from the Karowe mine, Botswana, is back on again.
The Canadian miner yesterday (18 February) announced details of a 10-year deal that is very similar to the one it abruptly ended last September.
Lucara was less than a year into a 10-year agreement when it pulled the plug, accusing HB of "a material breach of financial commitments".
But it appears the two sides patched up their differences some time ago, and that Lucara has been supplying HB with diamonds for almost three months.
In a statement Lucara said: "The NDSA (new diamond sales agreement) is subject to the approval of the company's project lenders.
"Upon such approval the agreement terms will be effective retroactively from December 1, 2023.
"Since that time, Lucara has continued to supply qualifying rough diamonds to HB in order to fund its operations and the Karowe Underground Project."
William Lamb, Lucara's president and CEO made only passing reference to earlier troubles when he said: "I'm pleased to announce Lucara's strategic decision to re-enter into a long-term supply agreement with HB Antwerp."
HB, founded in 2020, will sell all the +10.8-cts stones from Karowe. They account for around 70 per cent of Lucara's revenue.
HB pay a best-guess polished price then settle any differences with a subsequent top-up.
"This pricing mechanism is expected to deliver regular cash flow for this important segment of the Company's production profile at better than conventional diamond industry tender prices," said Lucara in a statement.