https://www.miningweekly.com

Stellar Diamonds receives buyout offer

1st February 2018

By: Megan van Wyngaardt

Creamer Media Contributing Editor Online

     

Font size: - +

JOHANNESBURG (miningweekly.com) - Aim-listed Stellar Diamonds is in advanced negotiations regarding a possible share offer for the entire issued and to-be-issued share capital of the company by Australian exploration company Newfield Resources (NWF).

Under the terms of the offer, Stellar's shareholders and the holders of rights over Stellar ordinary shares will receive in aggregate 95.5-million shares in NWF, which will equate to about 16.4% of the enlarged share capital of NWF.

Based on the closing share price of A$0.29 per NWF share on January 31, the terms of the possible offer imply a value of 12.7p per Stellar share, representing a premium of 452% to the closing price of Stellar's shares of 2.3p on January 31.

The making of any offer would be conditional, unless otherwise waived by NWF, on NWF securing underwriting for a A$30-million nonrenounceable rights issue, the proceeds of which will mainly be used to advance the Tongo-Tonguma project, in Sierra Leone, into production.

Further, the completion of any offer will be subject to the receipt of any necessary shareholder approvals from NWF in addition to being subject to approval from Stellar's shareholders and admission of the consideration shares to trading on the ASX.

The offer aims to merge the business interests of NWF and Stellar in Sierra Leone and bring the necessary funding to advance the high-grade and high-value Tongo-Tonguma project, which Stellar holds through its own licences and the tribute mining and revenue share agreements with Octea Mining.

"A combination of the two companies would create an enlarged and well-funded diamond development company focussed on Sierra Leone which can generate significant long-term value to the shareholders of both companies through bringing into commercial production the 4.5-million-carat Tongo-Tonguma project," said Stellar.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION