Lucara Diamond Acquires Clara Diamond Solutions

Lucara Diamond Corp. (TSX:LUC) announced the acquisition of Clara Diamond Solutions Corp. a company whose primary asset is a secure, digital sales platform that will transform how rough diamonds are sold.

As quoted in the press release:

The acquisition will unlock value for diamond producers and manufacturers alike. Clara uses proprietary analytics together with cloud and blockchain technologies to modernize the existing diamond supply chain, driving efficiencies and ensuring diamond provenance from mine to finger. Lucara has agreed to purchase Clara for a total up-front consideration of 13.1 million shares of Lucara (approximately $29 million in up-front consideration based on the closing price of Lucara common shares as at February 22, 2018) resulting in approximately 3.7% dilution to its existing share capital.

Lucara intends to commercialize the Clara platform in the coming months using a selection of the diamond production from the company’s Karowe Diamond Mine. Thereafter, Clara will be scaled to accommodate diamond uptake from a variety of sources across the supply chain. Testing on the platform has demonstrated the potential to unlock greater than 20% of value throughout the diamond pipeline to the benefit of all participants. Clara’s revenue model will be based on capturing a portion of this incremental value.

Click here to read the full Lucara Diamond Corp. (TSX:LUC) press release.