After successfully listing on the local bourse, Lucara Diamond Corp said it will apply to float its common shares in Sweden on Nasdaq OMX First North.
The Canadian miner, which has assets in Botswana, is already listed on the Toronto Stock Exchange (TSX) and has a secondary listing on the Botswana Stock Exchange (BSE) and the move is meant to spread liquidity across the markets.
Lucara said the listing aims to offer shareholders the ability to trade the Shares on First North and investors the ability to access the same, adding that no new shares will be offered in conjunction with the listing.
CEO of the company, William Lamb, said 2010 has been good for Lucara and it awaits new shareholders.
“We are very excited about offering our shareholders the opportunity to trade their shares on First North,” said Lamb.
“The past year has been a period of major growth for the company and we look forward to welcoming many new shareholders in Sweden when trading commences.”
“A listing on First North will complement our existing listings on the Toronto Stock Exchange and the Botswana Stock Exchange by adding greater liquidity and depth of distribution,” he added.
Information on NASDAQ OMX First North website says it is an alternative market, operated by the different exchanges within NASDAQ OMX. It does not have the legal status as an EU-regulated market.
Companies at First North are subject to the rules of First North and not the legal requirements for admission to trading on a regulated market. The risk in such an investment may be higher than on the main market.
Lucara has engaged E. Ohman J:or Fondkommission AB (Pareto Ohman), part of the Pareto Securities Group, as the company’s financial adviser in conjunction with the listing.
However, the company added that trading on First North is subject to a number of conditions, including affiliation of the Shares to Euroclear Sweden, sufficient shareholder distribution in Sweden and distribution of a company description.
If the move is approved by authorities, the aim is to have Lucara the listing First North completed in the fourth quarter of 2011. Pareto Ohman will be the company’s certified adviser on First North.
Lucara is a well positioned emerging new diamond producer and it has two key assets: AK6 diamond mine in Botswana and the Mothae diamond mine in Lesotho.
The 100 percent owned AK6 project is in the construction stage with mine commissioning scheduled to commence in the fourth quarter of 2011.
The 75 percent owned Mothae mine is currently in the trial mining stage. Both Mothae and AK6 are world class assets with tonnage and throughput upside; diamond values from both could significantly increase with the continued recovery of Type IIA and large stones.
Lucara listed in Botswana in July in a move aimed at giving the local people a chance to invest in diamonds in a country which is the largest source of diamonds.
AK6 project is expected to be handed over to Lucara by EPCM contractor by February 16, 2012.
It was initially supposed to be handed over by December 16, 2011, but the date was affected by labour actions in South Africa that affected the delivery of construction materials.