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Lucara Secures $50 Million Equity Boost for Karowe Underground Expansion

Lundin Family Trusts back CAD 70 million private placement to fund 2026 development plans

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Lucara Diamond Corp. has raised CAD 70 million (approximately $50.5 million) through a private placement of equity to support the advancement of its Karowe Underground Project (UGP) and strengthen its working capital position.

The company issued around 437.5 million shares at a price of CAD 0.16 per share, with the Lundin Family Trusts subscribing to the entire offering. The Lundin family controls Nemesia, Lucara’s largest shareholder, reinforcing its long-term commitment to the miner’s flagship Botswana operation.

Proceeds from the financing will be primarily used to progress the Karowe UGP, a key growth initiative aimed at extending the life and value of the mine, alongside general corporate and working capital requirements.

Commenting on the transaction, Lucara President and CEO William Lamb said the support from the Lundin Family Trusts highlights the strategic importance of the underground expansion. He added that the funding will position the company to accelerate critical project milestones planned for 2026.

The private placement is subject to customary regulatory approvals, including acceptance by the Toronto Stock Exchange, and does not require shareholder approval. Lucara expects the transaction to close by the end of the month.

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DiamondBuzz

Botswana Diamonds rebrands as Botswana Minerals PLC

Signals a definitive shift toward copper exploration as the diamond market faces a stiff cyclical downturn.

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Botswana Diamonds PLC, a long-time explorer of the world’s most famous gemstones, has officially rebranded as Botswana Minerals PLC, signaling a definitive shift toward copper exploration as the diamond market faces a stiff cyclical downturn. The name change, which took effect Feb. 27, follows a strategic review that leveraged artificial intelligence to scan the company’s massive 95,000-square-kilometer geological database. While the AI was originally designed to hunt for kimberlite pipes—the volcanic rock that hosts diamonds—it instead unearthed “outstanding” evidence of copper deposits.

A High-Tech Pivot

The company, listed on London’s AIM and the Botswana Stock Exchange, has identified 11 copper targets across the country and has already secured eight prospecting licenses. The move reflects a broader trend among junior miners seeking to capitalize on the “green metal” boom driven by electric vehicles, renewable energy, and AI data centers.

The Diamond Dilemma

The rebranding comes as the natural diamond sector grapples with two simultaneous concerns:

  • Technological Disruption: Lab-grown diamonds continue to cannibalize the lower end of the market, offering consumers a cheaper alternative that is chemically identical to mined stones.
  • Cyclical Downturn: Sluggish global demand and high inventory levels have dampened investor enthusiasm for natural stones.

Despite the pivot, the company is not abandoning its roots entirely. It remains one of the largest holders of exploration data in Botswana and intends to maintain its diamond acreage, betting that high-quality natural stones will eventually regain their luster.

By shifting focus to copper, Botswana Minerals (trading under the new ticker BMIN) joins a growing list of players in the Kalahari Copper Belt, a region increasingly viewed as a world-class mining frontier.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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