Lucara Applies for TSX Exemption as It Pursues $165 Million Private Placement

Lucara Applies for TSX Exemption as It Pursues $165 Million Private Placement. Lucara Diamond Corp. has submitted an application to the Toronto Stock Exchange seeking a financial hardship exemption linked to a planned private placement aimed at raising 165 million US dollars.

The company said the request falls under Section 604(e) of the TSX Company Manual and relates to a previously announced non brokered private placement. Lucara stated that without the exemption, the transaction would require approval from a majority of holders of its issued and outstanding common shares on a disinterested basis. This would exclude votes from entities controlled by the Lundin Family Trusts.

According to Lucara, the exemption is being sought on the grounds that the company is facing serious financial difficulty and that the private placement is intended to address these challenges in a timely manner. The company indicated that the funds raised would be used to manage a liquidity shortfall.

Lucara said the capital would allow it to continue advancing the Karowe underground project while it works toward securing longer term project financing. The Karowe underground project, often referred to as the UGP, is a key development initiative for the company.

The company further noted that it is currently unable to generate enough operating cash flow from its existing operations to fund future development of the underground project. It also stated that it has not been able to access additional loan facilities to maintain the project schedule while arranging the remaining project financing.

Lucara emphasized that the private placement forms part of its efforts to stabilize its financial position and maintain progress on the Karowe underground development. The outcome of the exemption application will determine whether the company can proceed without the additional shareholder approval process outlined by TSX rules.