• Lucara plans a share placement of at least C$70 million to fund Karowe UGP

• The Lundin family will subscribe up to C$70 million to maintain its stake

• The underground expansion is expected to cost $779 million in total

Lucara Diamond said on Friday, January 9, that it plans a share placement to raise at least C$70 million ($50.4 million) to help finance the underground expansion of its Karowe diamond mine in Botswana. The Lundin family, Lucara’s largest shareholder, intends to take part in the operation by subscribing up to C$70 million in shares, with the aim of maintaining or increasing its ownership in the company.

“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. This financing will enhance our ability to accelerate key developments planned for 2026,” Lucara chief executive William Lamb said. He added that the funding would strengthen the company’s ability to advance key development milestones planned for 2026.

The Karowe underground expansion is scheduled to enter production in the first half of 2028. According to an updated feasibility study published on January 5, 2026, the project carries a total cost of $779 million, of which more than $436 million has already been spent. To cover the remaining balance, Lucara said it plans to combine debt financing, cash flow from current operations, and private placements such as the one announced last week.

Once the expansion is completed, Lucara expects total production of about 4.5 million carats over a mine life of 10 years. This compares with forecast output of between 330,000 and 360,000 carats in 2025. The project is being advanced amid a prolonged downturn in prices and demand for natural diamonds. For now, the impact of the market slowdown has been limited for Lucara, which reported stable revenues in 2025 despite lower diamond sales volumes.

Emiliano Tossou