Lucara Diamond Welcomes Decision of Botswana Gov’t, “No Impact” Expected

Mining and Exploration
20/09/2017 10:41

In response to a recent Reuters article (based on an Mmegi Online article) mentioned yesterday, Lucara Diamond Corp. - whose mining assets are located in Botswana - has issued a statement to "provide clarity" after the miner was mentioned specifically as a catalyst for a government decision to establish first rights to diamonds of "unusual" size or quality unearthed in the country.

The statement reads: "A proposed amendment to the Botswana Precious and Semi Precious Stones (Protection) Act as described in a Reuters' article released on September 18, 2017, regarding the Botswana Government's right to purchase diamonds that are unusually large or have unusual features at market prices, will have no impact on Lucara Diamond Corp.'s financial position.

The bill as mentioned in the article states that 'the price to be paid by government for a rough or uncut precious stone offered for sale by the producer shall be agreed by the parties in accordance with the current market price of the rough or uncut precious stone'.

Lucara is in agreement with this policy as a way for both the government and the Company to achieve sustainable revenue at market prices for the sale of its diamonds."