Image Sourced ShutterStock
Market Herald logo

Subscribe

Be the first with the news that moves the market
  • Newfield has approved the development of the Tongo Diamond Mine in Sierra Leone
  • Binding agreements to issue two tranches of unlisted, unsecured bonds totalling up to US$30.5 million
  • The funds will go to the new diamond mine

Newfield Resources has approved the Tongo Mine Development in Sierra Leone.

The diamond exploration company has gone into binding agreements to issue two tranches of unlisted, unsecured bonds totalling up to US$30.5 million.

Tranche A, will raise up to US$20 million which will be drawndown on a quarterly basis, with the first drawdown expected by the end of September.

Tranche B has already received A$4.5 million, with residual bonds to be issued on drawdown of the remaining funds by the end of the year.

The US$30.5 million will go towards the development of Tongo.

Executive Director Karl Smithson is pleased with the Final Investment Decision for Tongo.

“We are delighted to have agreed a funding package that allows us to commence construction of the Company’s flagship Tongo Diamond Mine Development,” he said.

The Tongo Diamond Project is in Sierra Leone, West Africa. The mine is predicted to have an eight year life with annual production of 260,000 carats forecast in the fifth year.

Currently the Tongo mine covers 134 square kilometres and host 11 known kimberlites.

“Consistent with the recently completed Tongo FEED Study development timeline we expect to be mining first diamonds within 12 months of initial portal blasting,” Karl said.

The company plans to complete the box cut evaluation, the first blasts for the underground portal and decline development for the new diamond mine.

NWF by the numbers
More From The Market Herald
Ballymore Resources (ASX:BMR) - Non Executive Chairman, Nick Jorss

" Ballymore Resources (ASX:BMR) begins drilling in Queensland

Ballymore Resources (ASX:BMR) has begun drilling at the Matthews Pinnacle and Seventy Mile Mount prospects in…
Ballymore Resources (ASX:BMR) - Non Executive Chairman, Nick Jorss

" Ballymore Resources (ASX:BMR) intersects significant assays at Seventy Mile Mount

Ballymore Resources (ASX:BMR) has intersected significant assays in its initial drilling program at the Seventy Mile…

" Ballymore Resources (ASX:BMR) begins stage one drilling at Ruddygore

Ballymore Resources (ASX:BMR) has begun stage one drilling at the Ruddygore Prospect in North Queensland.

" Ballymore Resources (ASX:BMR) confirms displacement of Duffer lode at Dittmer mine, QLD

Ballymore Resources (ASX:BMR) has confirmed through diamond drilling that the historic Duffer lode at its Dittmer…