• Lucara Diamond places $350 million bonds for Botswana Karowe mine expansion
• Funds repay $220 million debt and cover project, interest costs
• Underground project could extend Karowe mine life to 2038

Canadian mining company Lucara Diamond said on Thursday it had placed $350 million in senior secured bonds, part of a financing package to complete the underground expansion of its Karowe diamond mine in Botswana.

Settlement of the bonds is expected around March 27, subject to customary conditions. The proceeds will be used to repay $220 million in existing project debt, fund two years of interest payments on the bonds and cover remaining costs related to the Karowe underground project.

The expansion carries a total estimated cost of $779.2 million, of which $469.4 million had been incurred as of December 31, 2025, according to the company’s updated feasibility study. Earlier this year, Lucara also raised C$165 million through an equity private placement, bringing the project’s full financing package together.

“Following closing of the bond financing, the company expects to have sufficient funding to complete the UGP without further financing, provided the project moves forward on schedule and the company meets its production and revenue forecasts,” Lucara said in a release.

Completing the expansion is central to Lucara’s long-term plans for Karowe. The underground project is expected to extend the mine’s operational life to 2038, with estimated production of 4.5 million carats over that period.

The financing comes as the company faces a persistently weak global diamond market, with demand for natural diamonds remaining subdued. Progress at Karowe will therefore be closely watched, particularly by the Botswana government, which receives a 10% royalty on the mine’s revenues.

Aurel Sèdjro Houenou