PERTH (miningweekly.com) – ASX-listed Newfield Resources has secured a A$55-million funding facility to advance its Tongo diamond mine, in Sierra Leone, towards commercial production.
The company on Wednesday said that the funding facility would provide Newfield with access to committed capital, allowing flexibility on the timing of any potential capital raise, but would not obligate the company to proceed with any placement.
The funding facility with SBC Global Investment Fund would have a 36-month period and would include an initial placement of more than 1.45-million shares, at an issue price of 34.4c each, raising an initial A$500 000 on the signing of the facility agreement.
Newfield started production at Tongo earlier this year, and the company has sold more than 5 000 ct in Antwerp in May this year, at a sales price of $262/ct. Newfield said on Wednesday that the funding facility would contribute to the continued development of the project and to advance the Kundu and Lando declines, as well as to fund the opening of additional mining and production areas from the Kundu kimberlite, and start production from the Lando kimberlite.
Funds would also be used for drilling work to convert mineral resources to reserves at the nearby Tongo Dyke-1 orebody.