Newfield secures funding for Tongo diamond mine project in Sierra Leone
Newfield Resources has secured A$55-million funding facility to advance its Tongo diamond mine project, in Sierra Leone.
The funding facility would provide Newfield with access to committed capital, allowing flexibility on the timing of any potential capital raise, but would not obligate the company to proceed with any placement.
The funding facility with SBC Global Investment Fund would have a 36-month period and would include an initial placement of more than 1.45-million shares, at an issue price of 34.4c each, raising an initial A$500 000 on the signing of the facility agreement.
Tongo Mine
The Tongo Mine Development combines kimberlite dyke hosted diamond resources on two adjacent mining licences that cover over 134 square kilometres and host 11 known kimberlites. It is subject to a Tribute Mining Agreement between the two mining licence holders, being Newfield’s subsidiary company, Sierra Diamonds Limited, and Octea Mining’s subsidiary company, Tonguma Limited.
A Front End Engineering and Design (FEED) Study on the Tongo Mine Development was commissioned by Newfield following its acquisition of Stellar Diamonds plc in early 2018. The FEED Study was completed by leading mining consultant, PPM, in April 2019 and delineates a technically robust and highly economic project.
Newfield’s plans for the Tongo Mine Development target the creation of a substantial diamond mining operation. With strong support from local communities and government agencies, Newfield expects to forge an effective partnership amongst all stakeholders.
