|
|
Home Technology / Education Events & News Archives Designs e - NewsLetter |
Stellar Diamonds plc announced Agreement to Sell Guinea Assets for US$2 million Receipt of US$250,000 Exclusivity Fee Stellar Diamonds plc, the diamond development company focused on West Africa, announces that it has entered into a conditional binding Term Sheet with BDG Capital Limited (“BDG”) in relation to the proposed sale of Stellar’s assets in the Republic of Guinea. Highlights:
Chief Executive Karl Smithson commented: “The proceeds will be used to advance the development of our flagship Tongo-Tonguma kimberlite project in Sierra Leone; a project that has an estimated post-tax NPV(8) of US$104 million attributable to Stellar. “The proposed Tongo-Tonguma mine has a low capex requirement of US$32 million and the potential to be the second largest kimberlite diamond mine in West Africa - with forecast production levels of 200,000 carats per annum, generating revenues of over US$45 million per annum over a minimum life of mine of 21 years. “The proposed disposal of our Guinea assets allows management to focus on the Tongo – Tonguma mine development in Sierra Leone. It also allows for BDG to take the projects forward which is in the interests of Guinea and local stakeholders. “We look forward to unlocking the significant value that we believe is inherent in the Tongo-Tonguma development as we advance the Company towards sustained commercial production.” The disposal comprises certain plant and equipment as well as the shares in subsidiary companies Ressources Tassiliman Baoulé (75% interest in the Baoulé project), Ressources Mandala Guinee (100% interest in the Mandala project) and West African Diamonds (100% interest in the Droujba project), collectively termed “the Guinea Projects”. Further detail on these assets is set out in the competent person’s report which was announced on 31 October 2016 and which is available on the Company’s website. Segmental information regarding the results and net book value of these assets is available in the Company’s announcement of its interim results made on 31 March 2017. |