By: Creamer media

The Vancouver-headquartered company said on Wednesday that it would issue up to 1.03-billion common shares at a price of C$0.16 a share, with gross proceeds of C$165-million.

Lucara initially intended to raise C$70-million by placing 437.5-million shares.

Lucara expects the net proceeds to be used primarily to advance the Karowe UGP, including shaft equipping, conveyance commissioning and lateral development, as well as extraction and drill horizon development. Funds will also be allocated to general working capital and corporate purposes.

Lucara president and CEO William Lamb said the decision to increase the size of the equity financing reflected robust investor support.

“The decision to upsize this equity financing reflects strong investor demand, led by the continued support of the Lundin Family Trusts. The upsized proceeds meaningfully strengthen the company's capacity to advance the Karowe UGP and execute key development milestones targeted for 2026,” Lamb said.

Trusts settled by the late Adolf H. Lundin have indicated their intention to subscribe for up to C$70-million of the private placement in order to maintain, and potentially increase, their interest in the company.

Nemesia, a private entity controlled by the Lundin Family Trusts, is currently Lucara’s largest shareholder.