Stellar Diamonds PLC Extension of Tribute Mining Agreement Longstop (1331Z)
December 12 2017 - 10:45AM
UK Regulatory
TIDMSTEL
RNS Number : 1331Z
Stellar Diamonds PLC
12 December 2017
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
12 December 2017
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Extension of Tribute Mining Agreement Longstop date
Stellar Diamonds plc, the London listed diamond development
company focused on West Africa, announces that it has agreed with
Octea Mining to extend the longstop date (for the satisfaction of
certain of the conditions precedent of the binding Tribute Mining
and Revenue Agreements ( "Agreements") in relation to the
Tongo-Tonguma mine development project in Sierra Leone, as defined
in the announcement dated 28 April 2017) to 31 January 2018 whilst
certain project funding options are being pursued. Stellar will
undertake to cover project costs at Tonguma during the longstop
period, which equate to approximately US$80,000 per month. Tonguma
is a 25 year mining licence that is located adjacent to Stellar's
Tongo licence, which together form the Tongo-Tonguma project that
hosts the 4.5 million carat resource currently defined from three
individual high grade kimberlites that stretch across the licences.
Tonguma hosts significant camp facilities and other infrastructure
which will be used as the platform for the future mine development
and kimberlite ore processing, thus saving significant time and
money in the lead up to the proposed mine development.
For further information contact the following or visit the
Company's website at www.stellar-diamonds.com.
Karl Smithson, Stellar Diamonds plc Tel: +44 (0) 20
CEO 7010 7686
Emma Earl Cairn Financial Advisers Tel: +44 (0) 20
Sandy Jamieson (Nominated Adviser) 7213 0880
Jon Bellis Beaufort Securities Tel: +44 (0) 20
Limited (Joint Broker) 7382 8300
Martin Lampshire Peterhouse Corporate Tel: +44 (0) 20
Finance (Joint Broker) 7469 0930
Rory Scott Mirabaud Securities
(Financial Advisers) Tel: +44 (0) 20
7878 3360
Tim Blythe Blytheweigh Tel: +44 (0) 20
Nick Elwes (Financial PR) 7138 3204
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
estimated to give Stellar an attributable a Post-tax NPV(8) of
US$109 million and IRR of 31%.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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 complete the
Tribute Mining Agreement. 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
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