LUCARA ANNOUNCES STRATEGIC SHIFT IN UNDERGROUND PROJECT MANAGEMENT
VANCOUVER, BC, March 31, 2025 /PRNewswire/ -- (TSX: LUC) (BSE: LUC) (Nasdaq FNGM: LUC) PDF version
Lucara Diamond Corp. ("Lucara" or the "Company") today announced a strategic change in the management of its Karowe underground project ("UGP") in Botswana. The Company has terminated its Engineering, Procurement and Construction Management ("EPCM") contract with JDS Energy & Mining Inc. ("JDS") for the development of the UGP, effective March 31, 2025. The Company has entered into a Master Service Agreement ("MSA") with JDS to complete specific engineering components of the project, while all site-based contracts and activities will transition to owner-managed operations.
This decision aligns with Lucara's commitment to optimizing project execution and maximizing shareholder value. The shift to owner-managed operations for site-based activities is expected to provide several benefits, including:
- Enhanced cost control and operational efficiency
- Improved flexibility in decision-making and resource allocation
- Direct oversight of critical project milestones and timelines
- Leveraging Lucara's extensive in-house expertise and knowledge of the Karowe mine
The UGP continues to make significant progress. The production shaft has now reached over 720 meters below surface and the ventilation shaft has now reached over 680 meters below surface. Substantial advancements have been made on the production man and materials winder building, with the majority of the required surface infrastructure already in place. This includes the installation of permanent bulk air coolers and other critical components, positioning the project for continued success as it moves forward under the new management structure.
William Lamb, President and CEO of Lucara, commented on the transition: "We are confident that this strategic shift in project management will allow us to better leverage our team's deep understanding of the Karowe mine and its unique characteristics. By taking direct control of site-based activities, we are positioning ourselves to respond more rapidly to project needs and challenges. This approach will enable us to drive the UGP forward with greater efficiency and precision, ultimately delivering enhanced value to our shareholders and stakeholders."
The Company appreciates the contributions made by JDS to date and looks forward to their continued involvement under the MSA in specific engineering aspects of the project. Lucara remains committed to the successful development of the UGP, which will extend the life of mine at Karowe and secure its position as a leading producer of large, high-quality diamonds.
On behalf of the Board,
William Lamb
President and Chief Executive Officer
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ABOUT LUCARA
Lucara is a leading independent producer of large exceptional quality Type IIa diamonds from its 100% owned Karowe Diamond Mine in Botswana. The Karowe Mine has been in production since 2012 and is the focus of the Company's operations and development activities. Lucara has an experienced board and management team with extensive diamond development and operations expertise. Lucara and its subsidiaries operate transparently and in accordance with international best practices in the areas of sustainability, health and safety, environment, and community relations. Lucara has adopted the IFC Performance Standards and the World Bank Group's Environmental, Health and Safety Guidelines for Mining (2007). Accordingly, the development of the Karowe underground project ("UGP") adheres to the Equator Principles. Lucara is committed to upholding high standards while striving to deliver long-term economic benefits to Botswana and the communities in which the Company operates.
ADDITIONAL INFORMATION
The information is information that Lucara is obliged to make public pursuant to the EU Market Abuse Regulation. The Company's certified adviser on the Nasdaq First North Growth Market is Bergs Securities AB, ca@bergssecurities.se, +46 739 49 62 50. This information was submitted for publication, through the agency of the contact person set out above, on March 31, 2025 at 2:00 p.m. Pacific Time.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
This news release contains certain forward-looking information and forward-looking statements as defined in applicable securities laws (collectively referred to as "forward-looking statements"). These statements relate to future events or our future performance. All statements other than statements of historical fact are forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Forward-looking statements in this news release include statements regarding the estimation of mineral resources, cost and timing of the development of deposits and estimated future production, the economic potential of mineralized areas, expectations that the Karowe underground project will extend mine life, forecasts of revenues, future production activity, the future price and demand for, and supply of, diamonds, the project schedule and capital costs for the Karowe underground project, the diamond sales, production and cost estimates, and our expectations regarding the scheduling of activities for the Karowe underground project.
By their nature, forward-looking statements and information involve assumptions, inherent risks and uncertainties, many of which are difficult to predict and are usually beyond the control of management, that could cause actual results to be materially different from those expressed by these forward-looking statements and information. Forward-looking information and statements are based on the opinions and estimates of management as of the date such statements are made, and they are subject to several known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievement expressed or implied by such forward-looking statements. The Company believes that the expectations reflected in this forward-looking information are reasonable, but no assurance can be given that these expectations will prove to be correct. Readers and investors should not place undue reliance on such statements.
Certain risks which could impact the Company are discussed under the heading "Risks and Uncertainties" in the Company's most recent MD&A and Annual Information Form available at SEDAR+ at www.sedarplus.ca. Forward-looking information and statements contained in this news release are made as of the date of this news release and accordingly are subject to change after such date. Except as required by law, the Company disclaims any obligation to revise any forward-looking information and statements to reflect events or circumstances after the date of such information and statements. All forward-looking information and statements contained or incorporated by reference in this news release are qualified by the foregoing cautionary statements.
For further information, please contact: Vancouver: Hannah Reynish, Investor Relations & Communications, +1 604 674 0272| info@lucaradiamond.com; Sweden: Robert Eriksson, Investor Relations & Public Relations, +46 701 112615 | reriksson@rive6.ch; UK Public Relations: Charles Vivian / Jos Simson, Tavistock, +44 778 855 4035 | lucara@tavistock.co.uk
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