Stellar Diamonds PLC CPR on Tonguma and Tongo Project, Sierra Leone (7961N)
October 31 2016 - 2:00AM
UK Regulatory
TIDMSTEL
RNS Number : 7961N
Stellar Diamonds PLC
31 October 2016
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION
TO US NEWS WIRE SERVICES.
31 October 2016
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Competent Persons Report on Tonguma and Tongo Project in Sierra
Leone
Stellar Diamonds plc, the London listed diamond development
company focused on West Africa, is pleased to announce that an
Independent Competent Person's Report ("CPR") has been completed by
MPH Consulting ("MPH") on the Tongo and Tonguma project (the
"Project") in Sierra Leone confirming the Project's initial
inferred recoverable resource of 4.0 million carats (+1.18mm) and
endorsing the mine plan for the Project. In its announcement (the
"Transaction Announcement") of 22 August 2016 the Company provided
details in respect of its proposed acquisition of the Tonguma
project (the "Proposed Acquisition") to combine with its adjacent
Tongo project. On 5 October 2016 the Company announced the results
of the independent preliminary economic assessment ("PEA") for the
Project demonstrating an estimated pre-tax Project NPV(10) and IRR
of $172 million and 49% respectively.
The CPR by MPH includes the Project as well as the portfolio of
other diamond projects held by Stellar. A copy of the CPR is
available for download from the Stellar website here.
Chief Executive Karl Smithson commented:
"The publication of the CPR marks another key milestone in the
Proposed Acquisition of the Project and follows the independent
mine plan and financial model in the PEA. We continue to make good
progress with the necessary legal and other due diligence work
required to complete the Proposed Acquisition. I look forward to
providing further updates in due course."
By virtue of the Proposed Acquisition being classified as a
reverse takeover under the AIM Rules for companies, trading in the
Company's shares on AIM will remain suspended until either an
admission document is published or the Company announces that the
Proposed Acquisition will not occur.
The Proposed Acquisition, if completed, would result in Stellar
holding a 75% economic interest in the Project following, inter
alia, preferential repayment of the initial investment made by
Stellar and payment of certain revenue royalty payments as outlined
in the Transaction Announcement. Shareholders should note that the
Proposed Acquisition remains subject to a number of conditions,
including inter alia, publication of an admission document and
shareholder approval.
Review by competent person
This announcement has been reviewed by Karl Smithson, Chief
Executive of Stellar, a qualified geologist and Fellow of the
Institute of Materials, Metals, Mining, with 28 years'
experience.
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
Caution regarding forward looking statements
Certain statements in this announcement, are, or may be deemed
to be, forward looking statements. Forward looking statements are
identi ed by their use of terms and phrases such as "believe",
"could", "should" "envisage", "estimate", "intend", "may", "plan",
"potentially", "will" or the negative of those, variations or
comparable expressions, including references to assumptions. These
forward looking statements are not based on historical facts but
rather on the Directors' current expectations and assumptions
regarding the Company's future growth, results of operations,
performance, future capital and other expenditures (including the
amount, nature and sources of funding thereof), competitive
advantages, business prospects and opportunities. Such forward
looking statements re ect the Directors' current beliefs and
assumptions and are based on information currently available to the
Directors.
A number of factors could cause actual results to differ
materially from the results discussed in the forward looking
statements including risks associated with vulnerability to general
economic and business conditions, competition, environmental and
other regulatory changes, actions by governmental authorities, the
availability of capital markets, reliance on key personnel,
uninsured and underinsured losses and other factors, many of which
are beyond the control of the Company. Although any forward looking
statements contained in this announcement are based upon what the
Directors believe to be reasonable assumptions, the Company cannot
assure investors that actual results will be consistent with such
forward looking statements. Accordingly, readers are cautioned not
to place undue reliance on forward looking statements. Subject to
any continuing obligations under applicable law or any relevant AIM
Rule requirements, in providing this information the Company does
not undertake any obligation to publicly update or revise any of
the forward looking statements or to advise of any change in
events, conditions or circumstances on which any such statement is
based.
About Stellar Diamonds plc
Stellar is an AIM listed (AIM: STEL) West African focused
diamond company with projects at the trial mining and mine
development stages in Guinea and Sierra Leone.
** ENDS **
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 7010
CEO Stellar Diamonds plc 7686
Philip Knowles, Tel: +44 (0) 20 7010
CFO 7686
Jon Bellis Beaufort Securities Limited Tel: +44 (0) 20 7382
(Broker) 8300
Rory Scott Mirabaud Securities (Financial Tel: +44 (0) 20 7878
Adviser) 3360
Emma Earl Cairn Financial Advisers Tel: +44 (0) 20 7213
Sandy Jamieson (Nominated Adviser) 0880
Lottie Brocklehurst St Brides Partners Ltd Tel: +44 (0) 20 7236
Charlotte Page 1177
This information is provided by RNS
The company news service from the London Stock Exchange
END
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