Lucara extends $50 million working capital facility two more weeks

Chicago, Oct. 31 – Lucara Diamond Corp. received another short-term extension of the maturity of its $50 million senior secured working capital facility and also an extension to the deferral for the requirement to place $52.9 million in a cost overrun reserve account, according to a press release.

The working capital facility has been extended to Nov. 15 after a previous extension to Nov. 1.

The cost overrun account balance is currently $18.4 million, up from $18.2 million.

The total debt package consists of a $170 million project loan and the working capital facility.

Presently, $90 million is drawn on the project loan and $35 million is outstanding on the working capital facility.

The initial extension froze further draws.

The company’s largest shareholder Nemesia Sarl provided a liquidity support guarantee in favor of the lenders for up to $15 million in aggregate, now extended to the new deadline, while discussions with lenders are ongoing.

In return for the first extension, the company issued a debenture to Nemesia to be drawn if Nemesia has to make a payment because of the guarantee.

Nemesia may also receive set amounts of shares for certain events if the liquidity guarantee is utilized.

Lucara is a diamond explorer based in Vancouver, B.C.

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