JOHANNESBURG (miningweekly.com) – Aim-listed Stellar Diamonds says it has been verbally informed that Sierra Leone’s Minerals Advisory Board has approved the company’s application for a mining licence for its Tongo project.
Progression of the licensing process, however, remained subject to the Ministry of Mines’ licensing body, the National Minerals Agency (NMA), formally writing to Stellar to inform it of the decision and drawing up a licence agreement to be forwarded to the Minister of Mines for approval.
Thereafter, the fiscal terms of the mining licence would be negotiated between Stellar and the Sierra Leone government and the resulting mining concession agreement would require ratification through Parliament.
Stellar would inform shareholders when the formal letter from the NMA was received.
In the meantime, the company was engaging with the country’s Environmental Protection Agency about an environmental licence, which was also required before mining at Tongo could start.
The company’s share price on the LSE rose nearly 12% on Tuesday following the announcement.