This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Will Purcell

The critical and specialty minerals stocks box score was a so-so 98-89-123 on Wednesday as the TSX Venture Exchange added one point to 1,095. Adam Lundin and Dr. William Lamb's Lucara Diamond Corp. (LUC) fell two cents to 23.5 cents on 1.36 million shares Tuesday, after it provided its third disclosure in the past 10 days regarding a planned private placement.

Twelve days ago, Lucara said it intended to raise "minimum aggregate gross proceeds of $70-million" by offering a minimum of 437.5 million shares at 16 cents per share. The company cheered that it expected that the net proceeds of the private placement "will be used to advance the Karowe underground project, including for shaft equipping, conveyance commissioning and lateral development, extraction, and drill horizon development, as well as for general working capital and corporate purposes."

Five days later, the company upped its ask -- or at least set an upper limit -- stating that it was offering 1.03 billion shares because of "strong demand." That would add $165-million to the company's treasury -- again to advance the underground project, with the prose unchanged from the previous explanation. And so, while it looked like the additional $95-million would provide a cushion, those who read deeper -- well into the cautionary note -- learned that Lucara was still expecting to raise more cash.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS