Monday, October 19, 2020

Lucara notifies local shareholders on dividend pay out

The Board of Directors of Lucara Diamond Corp has declared a quarterly dividend of C$0.015 per share. Local shareholders will however receive their dividend in the local currency, the Pula. 

The payment, which is expected to be made around 16 June 2016 will be made on the prevailing exchange rate. The exchange rate, being P8.888 to C$1.00 has been determined by Lucara’s bank, Standard Chartered Botswana Limited. 

Lucara Diamonds states in a communiqu├® that the gross dividend will be P0.1333 per share. At the same time it is expected that a net dividend payment will be made after the deduction of applicable withholding taxes imposed in accordance with Canadian taxation laws.

The dividend payout and recovery of the historic diamonds follows a major plant upgrade project at Karowe mine in 2014. The project, primarily integrating new large diamond recovery (LDR) X-ray transmissive technology (XRT) machines, was introduced to process harder ore and to improve the recovery of exceptional diamonds. The most significant results from the optimisation project were the recovery of a 1,111ct gem quality, Type IIa diamond, and an 813ct stone and a 374ct stone white diamonds in mid-November 2015. 

To date the, mine (formerly the AK6 Project), has been declared as a producer of high-quality rough diamonds. The mine is located within the Mining Licence (ML) 2008/6L, in the Orapa / Letlhakane Kimberlite district of north-central Botswana. The mine was developed with an investment of approximately $120m. 

In mid May 2016 the company announced the sale of the exceptional 812.77 carat, Type IIa diamond which was recovered from its Karowe mine in Botswana in November 2015. The stone, named “The Constellation”, was sold for US$63,111,111 (US$77,649 per carat), which is reportedly the highest price ever achieved for the sale of a rough stone. 

The stone was reportedly purchased by rough diamond trading company Nemesis International DMCC, with Lucara retaining a 10 percent interest in the net profit to be received from the sale of the resultant polished.

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