Photo by: Duane Daws
TORONTO (miningweekly.com) – Southern Africa-focused precious gem producer Lucara Diamond Corp on Monday announced that it had renewed its revolving term credit facility with The Bank of Nova Scotia (Scotiabank) for a three-year term and increased the limit to $50-million, giving it improved financial flexibility.
The facility would contain financial and non-financial covenants customary for a facility of this size and nature, and the applicable interest rate of any loan under the facility would be determined by the company's leverage ratio at any given time.
“We are delighted with the continued demonstration of Scotiabank's support of our business plan and strategy. While Lucara continues its strong cash flow generation the credit facility provides for future risk mitigation and allows the company to react quickly to potential growth investment opportunities,” Lucara president and CEO William Lamb said.
Lucara’s two assets are the active Karowe mine, in Botswana, and the Mothae project, in Lesotho, where the company had completed a trial mining programme.