Lucara Plans First Diamond Sale via New Online Platform

Lucara Diamond (TSX:LUC) has announced the date of its first digital diamond tender. The sale will be executed using the company’s online sales platform, Clara Diamond Solutions.

According to a press release, Clara Diamond Solutions will open its digital doors in November to an elite group of large, vertically integrated jewelry houses and global diamond manufacturers.

The uniquely designed Clara system uses algorithms, as well as blockchain technology and cloud computing, to achieve viable premiums over existing sales channels.

“After several months of intense commercialization efforts which are tracking on schedule and under budget, we are excited to be moving forward with our first sale,” Eira Thomas, CEO of Africa-focused Lucara, said in the Monday (October 22) release.

Merging the latest technology with one of the oldest mining sectors offers increased value to Lucara, its shareholders and ultimately end users, allowing them to better track the journey of precious gems from mine to possession.

“Clara is a scalable business solution for the entire diamond industry that is long overdue and necessary to modernize, streamline and increase consumer confidence in the marketplace,” added Thomas.

To develop Clara, Lucara collaborated with Sarine Technologies to create a system where digital fingerprints can be created for rough diamonds. These fingerprints can then be uploaded to the Clara platform with a corresponding asking price.

On the other end, diamond buyers place orders by typing in their specific polished diamond requirements in terms of size, color, cut, clarity and quality, including their desired purchase price.

“[Clara] has received strong interest from the diamond community and we are delighted to have secured excellent partners, consisting of leading diamond manufacturers and jewelry houses,” said Thomas.

Lucara sees the introduction of Clara as a revolutionary moment for the diamond industry. The digital marketplace will remove the need for buyers to buy lots or quantities of diamonds to obtain one stone.

The online service will also be available year round, eliminating the need for seasonal tenders and sales, while also offering stability to the diamond sector. Last but not least, the inclusion of blockchain tech makes every stone traceable, removing controversial blood and conflict diamonds from the market.

The first sale on Clara will include diamonds mined by Lucara at the company’s Karowe diamond mine in Botswana, as well as rough stones aggregated by third parties.

Lucara shares sat flat on Tuesday (October 23), trading at C$2.115.

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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.