RMB provides US$50m working capital facility to Lucara Diamond Corp.

The client challenge

Lucara Diamond Corp’s Karowe diamond mine located in Botswana, has been in production since 2012 and is one of the world’s foremost producers of large, high quality, Type IIA diamonds in excess of 10.8 carats.

In 2020 Lucara approached RMB Botswana to assist with the refinancing of their working capital facility, in partnership with the offshore bank that had financed the previous facility. RMB’s on the ground presence provided comfort to the offshore bank to continue funding Lucara.

The working capital facility was required to help progress the early pre-work required to take the Karowe mine into its next stage of growth from open cast to underground operations, which will extend the life of mine.

The RMB solution

In 2021 RMB stepped in to take on the full working capital facility, based on our sector expertise and knowledge of the Botswana market.

RMB acted as sole lender and mandated lead arranger to Lucara by structuring a working capital facility for Lucara to start the early work on their underground expansion project, seeing the company through to raising long-term project financing.

Benefits for the client

This transaction has enabled Lucara to manage the gap between their tender cycles from a working capital perspective, and to continue with the development of the underground expansion project while working through to project financing. This will extend the life of mine for a further 20 years – ensuring  continued employment and contribution towards economic growth in Botswana.