By:Miningreview

Clara is a digital marketplace that streamlines the sale of rough diamonds by integrating provenance and traceability services through the use of technology.

The founders will acquire 100% ownership of Lucara’s interests in Clara Diamond Solutions GP Inc., Clara Diamond Solutions Limited Partnership, and Clara Diamond Solutions B.V., including intellectual property rights, commercial contracts, and operating assets.

The total consideration comprises approximately US$3.0 million in cash at closing and the return of 10,000,000 Lucara common shares initially issued as partial consideration when Lucara originally acquired the Clara platform in 2018, and the transfer of liabilities tied to sales performance metrics or a change of control, amounting to a share issuance obligation of 13,400,000 Lucara common shares.

Lucara will retain a 3% net profit interest on Clara’s net earnings. The company has also granted Clara a 5-year rough diamond supply agreement for stones meeting the size and quality specifications historically sold through the Clara platform. This supply agreement may be terminated after the second anniversary or as otherwise mutually agreed between the parties.  

William Lamb, President and CEO of Lucara said “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.

“While the Clara platform provides an innovative digital channel for rough diamond sales, the successful onboarding of other producers’ rough production required to scale the platform, remains unattainable while the platform is owned by a pure-play diamond producer. Lucara maintains its conviction, reinforced by our supply agreement with Clara, that this technology will play an important role in the shaping of a demand driven diamond sector,” adds Lamb.

Aaron Ariel, current Managing Director and original founder of Clara says, “Nine years ago, while at our factory sorting through a mountain of rough diamonds – many of which we didn’t need but were required purchases bundled inseparably with product needed to fulfill urgent orders, 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. We look forward to partnering with stakeholders throughout the supply chain who share our vision for a healthier, more transparent, and, last but certainly not least, a more profitable industry for all,” adds Ariel.