06:37 AM EDT, 09/02/2025 (MT Newswires) -- Lucara Diamond ( LUCRF ) , trading near 52 week lows, over the holiday weekend announced the draw down of $10.0 million of the $63.0 million limited shareholder standby undertaking provided by the company's largest shareholder, Nemesia, to address a funding shortfall of the Karowe underground project.

A statement noted that Nemesia provided the standby undertaking in connection with the company's amended senior secured project financing debt package. The Standby Undertaking consists of two components: $28.0 million to support liquidity shortfalls until completion of the UGP; and $35.0 million as a funding shortfall guarantee in support for the UGP completion. For each $500,000 drawn under the standby undertaking, the ompany will issue 7,500 common shares per month to Nemesia until the amounts borrowed are repaid, such common shares being settled on a quarterly basis.

Lucara also announced recent "notable" diamond recoveries from the company's 100% owned Karowe Mine in Botswana. In August 2025, the company recovered a 1,019.85 carat non-gem diamond through its Mega Diamond Recovery unit. This is the ninth diamond over 1,000 carats from Karowe and the third recovered in 2025. Also in the month, the company recovered a 37.42 carat near-gem pink Type IIa diamond. Both stones were recovered from processing EM/PK(S) material, which is the target of the UGP and has now produced most of the world's largest recorded natural diamonds.

William Lamb, President and CEO of Lucara, said, "The decision to draw $10.0 million from the standby undertaking provided by our largest shareholder represents a prudent approach to maintaining our financial flexibility during the current period of ongoing UGP capital expenditures. This funding mechanism demonstrates the continued confidence and unwavering support of our major shareholders in Lucara's long-term strategy and the exceptional value potential, including the ongoing recovery of the world's most significant diamonds from our Karowe Mine."