Under the deal, Newfield will lend Stellar $3 million to help it over its immediate short-term cash needs, while undertaking a right issue to raise A$30 million (roughly $23.6m) to re-finance the blended company.
Stellar Diamonds PLC Mining News
Miner posted a net loss of $984,928, compared to a $663,145 loss a year earlier, due to an increase in costs of developing its Tongo-Tonguma diamond project in eastern Sierra Leone.
Funding for the project has not been secure yet, though the miner is in talks with Newfield Resources over a possible offer.
Deal allows the Stellar to focus on its bigger Tongo-Tonguma project in Sierra Leone, which would be the country's second largest diamond mine ever.
The 709-carat rock is the second-largest ever found in the West African nation.
Stellar Diamonds plc, the London listed diamond development company focused on West Africa, announces that it has paid US$150,240 to the Sierra Leone Environmental Agency for the Tongo Environmental Licence.
The operation would be second biggest diamond mine in Sierra Leone.
The diamond miner decided to offload those units to focus on its Tongo-Tonguma project in Sierra Leone, which has the potential to generate earnings of $45 million a year.
Deal creates one of the largest diamond mines in West Africa.
Emmanuel Momoh found the 706-carat diamond in Sierra Leone's Kono district.
The company originally intended to combine its Tongo project with Tonguma, but it has now decided to become the mine's operator.
The company said its proposed Tongo-Tonguma mine economic evaluation demonstrates robust financial returns for a modest capital requirement.
The diamond producer plans to combine its Tongo mine with Octea Mining’s adjacent Tonguma operation.
The West Africa-focused firm said it was verbally informed of the approval by the country's Minerals Advisory Board.
The permit marks another key step in the process of moving towards development of the 1.45 million carat diamond resource in the West African country, said the company.
The discovery of the 55-carat diamond confirms the presence of large stones in the area, said the company.
The move marks a key milestone as the diamond company moves from explorer to miner.
Stellar Diamonds plc, the London listed (AIM:STEL) diamond mining and exploration company focused on West Africa, is pleased to report encouraging initial diamond recoveries from drill core samples of the Company's 100% owned Droujba kimberlite pipe in