JOHANNESBURG (miningweekly.com) – London-listed Stellar Diamonds on Monday said it had extended, by two weeks, the longstop date with Octea Mining for the satisfaction of certain of the conditions precedent of the binding tribute mining and revenue agreements for the Tongo-Tonguma mine development project, in Sierra Leone.
The West Africa-focused diamond development company may have the longstop date extended for a further two weeks subject to agreement from Octea.
In May, Stellar noted that following the legally binding conditional tribute mining agreement and revenue share agreement signed in April, key advances had been made in terms of signing the binding tribute mining agreement and signing the contract for the front-end engineering design (FEED) for the initial mine development.
A FEED study contract for the project was signed shortly thereafter, with Paradigm Project Management appointed to prepare the study.
Stellar also secured a further 45-day extension to the longstop dates with the noteholders of its two outstanding convertible loan notes.
This followed the two-month extension announced in May.
The longstop dates were extended to September 15 for the purposes of the $1.24-million convertible loan notes and to August 15 for the purposes of the $1.65-million convertible loan notes.
The extension can be further extended by one week should the dates fall during the notice period for a general meeting called for the purpose of obtaining shareholder approval for any aspect of the transaction.
All other terms of the tribute mining agreements and convertible loan notes remain in force.