Lucara sells off Clara diamond sales platform

Lucara Diamond (TSX: LUC) announced the sale of its 100% interest in the Clara rough diamond sales platform to its original founders, a group led by the HRA Group of companies and company founder Eira Thomas.

Clara is a digital marketplace that modernizes how rough diamonds are sold, using technology to connect buyers and sellers, driving economic efficiencies for buyers and sellers. Clara enables verification technologies to efficiently integrate provenance and traceability services by transacting individual rough diamonds. This innovation addresses the industry’s need for improved standards of transparency and trust. 

The definitive sales agreement includes Clara Diamond Solution GP, Clara Diamond Solutions LP and Clara Diamond Solutions BV, including all intellectual property rights, commercial contracts and operating assets.

The total consideration is $3 million on closing and the return of 10 million Lucara common shares initially issued as partial consideration when Lucara acquired Clara in 2018.

Lucara will retain a 3% net profit interest on the net earnings of Clara. Lucara has also granted Clara a five-year rough diamond supply agreement, which may be terminated after the second anniversary or as otherwise mutually agreed between the parties.

“The divestiture of Clara enables us to intensify our strategic focus on maximizing returns and long-term value creation at our world-class Karowe diamond mine in Botswana. The company’s core competencies and future growth reside in the successful execution of the Karowe underground expansion project,” said Lucara CEO William Lamb.

Aaron Ariel, current managing director and original founder of Clara, added: “Nine years ago, we had a big idea for a technology that could transform the global rough diamond market for everyone. Today, we are excited about the opportunity to realize its full potential, which remains largely unexplored. We believe it will become the industry’s premier global rough diamond marketplace.”