Stellar Diamonds PLC Update on Guinea Assets Sale (8481N)
14 August 2017 - 4:00PM
UK Regulatory
TIDMSTEL
RNS Number : 8481N
Stellar Diamonds PLC
14 August 2017
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
14 August 2017
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Update on Guinea Assets Sale
Further US$250,000 Exclusivity fee
Stellar Diamonds plc (AIM:STEL) announces that it has signed an
extension of the exclusivity period to 31 August 2017 with BDG
Capital ("BDG") to complete the due diligence process in relation
to the disposal of Stellar's Guinea assets as announced on 5 June
2017 ("Guinea Announcement"). This exclusivity period may be
further extended, if required, in order to complete the sale
process. Due diligence is largely complete save for completion of
the audit of one of Stellar's Guinean subsidiary companies and tax
filings being completed for all three Guinea subsidiary companies
being disposed of.
Coincident with the extension, a further US$250,000 is expected
to be received by Stellar shortly from BDG taking the total
exclusivity fee for the sale to US$500,000 ("Exclusivity Fee"). The
terms of the Exclusivity Fee are as set out in the Guinea
Announcement.
Review by Competent Person
This announcement has been reviewed by Karl Smithson, Chief
Executive of Stellar, a qualified geologist and Fellow of the
Institute of Materials, Minerals and Mining.
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$104 million and IRR of 31%.
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 Stellar Diamonds plc 7164 6371
Philip Knowles,
CFO
Emma Earl Cairn Financial Advisers Tel: +44 (0) 20
Sandy Jamieson (Nominated Adviser) 7213 0880
Gavin Burnell 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
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",
"expect", "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. 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, but not limited to, Completion of the
Tongo-Tonguma transaction not occurring, the Tribute Mining
Agreements being terminated before the end of the Project mine
life, recoverability of diamonds not being as expected, 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
END
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