The board of Lucara Diamond Corp has formally approved the $534-million expansion of the company’s Karowe mine, in Botswana.
The underground mine construction approval follows the financial closure and satisfaction of all conditions precedent to a $220-million debt package, announced in July.
The first $170-million in funding would be available in mid-September, the company stated.
It noted that the underground expansion, which would extend the Karowe mine’s life to at least 2040, was fully financed.
The capital costs would be met from a combination of the facilities, projected cash flow from the openpit mine during the underground construction period, and equity financing totalling C$41-4-million,which closed in July.
Reporting on progress at the expansion project, the mining company said that construction efforts had ramped up since the facilities documentation was executed in mid-July.
Ventilation shaft presinking has started and the ventilation shaft depth below the shaft collar is currently at about 17 m. Mobilisation to site of the remaining presinking equipment and contractors is under way.
Civil work on the remaining ventilation and production shaft infrastructure is progressing well.