Stellar Diamonds PLC Completion of Sale of Guinea Assets (8689Y)
09 December 2017 - 2:29AM
UK Regulatory
TIDMSTEL
RNS Number : 8689Y
Stellar Diamonds PLC
08 December 2017
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
8 December 2017
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Completion of Sale of Guinea Assets
Stellar Diamonds plc, the diamond development company focused on
Sierra Leone, is pleased to report that, further to its
announcement on 28 November 2017, it has completed the disposal of
its Guinea assets to BDG Capital. Stellar has received the balance
of the sale proceeds of US$366,000 which is the net cash after the
US$500,000 advance previously made by BDG Capital to Stellar and
deduction of certain tax, retrenchment and legal costs from the
agreed transaction price of US$1,250,000.
Chief Executive Karl Smithson commented:
"We are delighted that the Guinea disposal has closed which now
allows us to fully focus on the development of the 4.5 million
carat high grade and high value Tongo-Tonguma kimberlite project in
Sierra Leone. The disposal of our Guinea assets not only brings in
additional working capital to the Company but going forwards also
saves approximately US$70,000 in costs per month. We would like to
wish BDG Capital every success in advancing the Guinea
project."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
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%.
About Stellar Diamonds plc
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 7010 7686
Philip Knowles, Tel: +44 (0) 20
CFO 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
** ENDS **
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEVLFBDLFLFBD
(END) Dow Jones Newswires
December 08, 2017 10:29 ET (15:29 GMT)
Stellar Diamonds (LSE:STEL)
Historical Stock Chart
From Apr 2024 to May 2024
Stellar Diamonds (LSE:STEL)
Historical Stock Chart
From May 2023 to May 2024