Lucara Closes $25 Million Credit Facility With Scotiabank
Lucara Diamond Corp. announced it has signed a definitive agreement with The Bank of Nova Scotia (Scotiabank) for a US$25 million revolving term credit facility with a maturity date of March 16, 2014, which may be extended. Up to $15 million is available immediately with the remaining $10 million available following delivery of security over the company’s Karowe assets, which is expected during the second quarter of this year.
The facility contains financial and non-financial covenants customary for a facility of this size and nature. The applicable interest rate of any loan under the facility will be determined by the company’s leverage ratio at any given time. The two-year facility will be secured by the company’s Karowe assets and guaranteed by its subsidiaries, which hold the Karowe assets.
The company intends to use the facility to fund ongoing operations primarily at the Karowe Mine in Botswana.
Lucara is a new diamond producer.