Lucara
Lucara Diamond Corp.

TSX-listed Lucara Diamonds has announced that it has closed its acquisition of Clara Diamond Solutions. The acquisition remains subject to final approval by the Toronto Stock Exchange.

As up-front consideration for the acquisition, Lucara Diamonds has issued 13.1 million shares to the former shareholders of Clara Diamond Solutions.

Further staged equity payments totaling 13.4 million shares become payable upon the achievement of performance milestones related to total revenues generated through the platform.

Lucara Diamonds has also agreed to a profit sharing mechanism whereby the founders and facilitators of the Clara Diamond Solutions technology, and management of Clara, will retain 13.33% and 6.67%, respectively, of the annual EBITDA generated by the platform, to a maximum of US$25 million per year, for 10 years.

BMO Capital Markets acted as financial advisers and Blake, Cassels & Graydon LLP were legal counsel to Lucara on the transaction.

DuMoulin Black LLP were legal advisers to Clara and Stikeman Elliott LLP were legal advisers to the founders and inventors of Clara Diamond Solutions.