Transactions
Lucara Diamond Corp. $110 Million Private Placement Closed
By Chad Accursi, Nancy Choi, Angela Chu, John H. Craig
On December 16, 2009, Lucara Diamond Corp. announced that it closed a $110 million private placement of subscription receipts.
The subscription receipts were sold by a syndicate of agents, led by GMP Securities L.P. and including Canaccord Financial Ltd., BMO Nesbitt Burns Inc., Cormark Securities Inc., Haywood Securities Inc. and PI Financial Corp., on a private placement basis at a price of $1.00 per Subscription Receipt, for aggregate gross proceeds to the Company of $110 million. Each Subscription Receipt will entitle the holder thereof to receive one common share of the Company without further payment or action on the part of the holder, upon satisfaction of the escrow release conditions. On December 17, 2009, the escrow release conditions were satisfied, the common shares underlying the subscription receipts were issued and the net proceeds of the offering were released to the Company.
The Company intends to use the net proceeds of the offering to fund commitments related to the AK6 diamond project acquisition, for ongoing exploration and development activity and for general corporate purposes.
The common shares issued on exercise of the subscription receipts are subject to a four month hold period in accordance with applicable Canadian securities laws expiring on April 17, 2010.
Cassels Brock acted for Lucara Diamond Corp. with a team that included John Craig (Securities and Mining), Chad Accursi (Securities and Mining), Nancy Choi (Securities) and Angela Chu (Securities).