Stellar Diamonds PLC Completion of Tribute Mining Agreement (3116G)
01 Mars 2018 - 8:00AM
UK Regulatory
TIDMSTEL
RNS Number : 3116G
Stellar Diamonds PLC
01 March 2018
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
1 March 2018
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Completion of Tribute Mining Agreement over Tongo-Tonguma,
Sierra Leone
Stellar Diamonds plc, the London quoted diamond exploration and
development company focused on West Africa, is pleased to announce
the completion of the Tribute Mining Agreement and Revenue Share
Agreement ("the Agreements") with Octea Mining Limited ("Octea") in
respect of the Tongo-Tonguma kimberlite diamond project in eastern
Sierra Leone ("Completion").
Completion follows the satisfaction or waiver of the conditions
precedent to the Agreements, including, inter alia, satisfaction of
the Initial Financing Condition (as such term was defined in the
Company's announcement on 28 April 2017, which set out key terms of
the Agreements) and all encumbrance over the Tonguma company or
assets having been lifted.
Pursuant to an agreement dated 27 February 2018, both Stellar
and Octea have agreed that outstanding title opinions over the
Tongo and Tonguma licences will be provided following payment of
licence fees for the existing Tonguma mining licence held by
Tonguma Limited which Stellar is expected to fund shortly. The
Tongo mining licence has been approved by the Minerals Advisory
Board and the licence fee is expected to be paid when the Company
has secured the project funding. In this regard, the Company is
continuing its discussions with Newfield Resources Limited
regarding the Possible Offer as announced on 1 February 2017 and 28
February 2018.
Chief Executive Karl Smithson commented:
"The closure of the Agreements with Octea mark a major milestone
for Stellar as it secures the Tongo-Tonguma project for the planned
long-term development programme. We have already commenced the
front end engineering design ("FEED") programme and have signed a
contract for 9,000 metres of mine development drilling that will
enhance the geological control for the first two levels of
mining.
"Discussions are ongoing with Newfield Resources regarding the
indicative offer which, if successfully concluded, and supported by
our respective shareholders, will result in sufficient funding
being made available to bring the Tongo-Tonguma project into
production according to the refined mine plan that will be
generated by the FEED programme. We look forward to updating
shareholders in the near future."
For further information contact the following or visit the
Company's website at www.stellar-diamonds.com.
Karl Smithson, Stellar Diamonds Tel: +44 (0) 20 7010
CEO plc 7686
Sandy Jamieson Cairn Financial Tel: +44 (0) 20 7213
Emma Earl Advisers (Nominated 0880
Adviser)
Jon Bellis Beaufort Securities Tel: +44 (0) 20 7382
Limited (Joint 8300
Broker)
Martin Peterhouse Corporate Tel: +44 (0) 20 7469
Lampshire Finance (Joint 0930
Broker)
Tim Blythe Blytheweigh Tel: +44 (0) 20 7138
Nick Elwes (Financial PR) 3204
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014 and has been arranged for
release by Karl Smithson, Chief Executive Officer of the
Company.
About Stellar Diamonds plc
Stellar is an AIM listed (AIM: STEL) diamond development company
focused on the 4.5 million carat high-grade and high value
Tongo-Tonguma kimberlite diamond project in the world famous
diamond fields of eastern Sierra Leone. An independently generated
mine plan, based on over 66,000m of drilling that has been
completed to date, envisages the production of over 4 million
carats, generating gross revenues of more than US$1.2 billion, over
a 21 year life of mine. Initial production at Tongo-Tonguma is
scheduled to occur in the first year of development, building up to
over 200,000 carats per annum, with a weighted average modelled
diamond value of $229 per carat. The Tongo-Tonguma mine is
currently estimated to give Stellar an attributable a Post-tax
NPV(8) of US$112 million and IRR of 31%.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "will" or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. In particular,
there is no guarantee that the Company will be able to able to
raise the funds to develop the Tongo-Tonguma Project. Such forward
looking statements re ect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors.
A number of factors could cause actual results to differ
materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements. Accordingly, readers are cautioned not
to place undue reliance on forward looking statements. Subject to
any continuing obligations under applicable law or any relevant AIM
Rule requirements, in providing this information the Company does
not undertake any obligation to publicly update or revise any of
the forward looking statements or to advise of any change in
events, conditions or circumstances on which any such statement is
based.
** ENDS **
This information is provided by RNS
The company news service from the London Stock Exchange
END
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March 01, 2018 02:00 ET (07:00 GMT)
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