Jul 25, 2019

Newfield to Commence Construction at Tongo Diamond Mine Development in Sierra Leone

Newfield Resources Limited has announced that it has taken a positive Final Investment Decision (FID) for its flagship Tongo Diamond Mine Development in Sierra Leone. The Company also announced binding agreements “to issue two tranches of unlisted, unsecured corporate bonds (totalling up to approximately US$30.5 million, which will deliver funding to commence development at Tongo”.  

Tranche A: to raise upto US$ 20 million, for which bonds will be issued on quarterly drawdown (max quarterly draw of US$5m), with first drawdown expected on 30 September 2019.  For Tranche B, A$4.5 million has been already received and residual bonds will be issued upon drawdown of remaining funds scheduled over the second half of 2019. Both tranches will attract a 12% interest rate, to be paid semi-annually.

As a result, construction is set to commence at Tongo, with underground portal blasting expected to start in the coming weeks. The Company expects to recover its first diamonds within 12 months of the initial portal blast.  

Newfield Executive Director, Karl Smithson, commented: “We are delighted to have agreed a funding package that allows us to commence construction of the Company’s flagship Tongo Diamond Mine Development. We will now move to commence development activities at Tongo following the positive Final Investment Decision made by the Newfield Board. This will start with completion of the box cut excavation and first blasts for underground portal and decline development.”