8 Dec 2017 15:29
NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.
8 December 2017
AIM: STEL
Stellar Diamonds plc
("Stellar" or the "Company")
Completion of Sale of Guinea Assets
Stellar Diamonds plc, the diamond development company focused on Sierra Leone, is pleased to report that, further to its announcement on 28 November 2017, it has completed the disposal of its Guinea assets to BDG Capital. Stellar has received the balance of the sale proceeds of US$366,000 which is the net cash after the US$500,000 advance previously made by BDG Capital to Stellar and deduction of certain tax, retrenchment and legal costs from the agreed transaction price of US$1,250,000.
Chief Executive Karl Smithson commented:
"We are delighted that the Guinea disposal has closed which now allows us to fully focus on the development of the 4.5 million carat high grade and high value Tongo-Tonguma kimberlite project in Sierra Leone. The disposal of our Guinea assets not only brings in additional working capital to the Company but going forwards also saves approximately US$70,000 in costs per month. We would like to wish BDG Capital every success in advancing the Guinea project."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
About Stellar Diamonds plc
Stellar is an AIM listed (AIM: STEL) diamond development company focused on the 4.5 million carat high-grade and high value Tongo-Tonguma kimberlite diamond project in the world famous diamond fields of eastern Sierra Leone. An independently generated mine plan, based on over 66,000m of drilling that has been completed to date, envisages the production of over 4 million carats, generating gross revenues of more than US$1.2 billion, over a 21 year life of mine. Initial production at Tongo-Tonguma is scheduled to occur in the first year of development, building up to over 200,000 carats per annum, with a weighted average modelled diamond value of $229 per carat. The Tongo-Tonguma mine is estimated to give Stellar an attributable a Post-tax NPV(8) of US$109 million and IRR of 31%.
About Stellar Diamonds plc
For further information contact the following or visit the Company's website at www.stellar-diamonds.com
Karl Smithson, CEO Philip Knowles, CFO | Stellar Diamonds plc Stellar Diamonds plc | Tel: +44 (0) 20 7010 7686 Tel: +44 (0) 20 7010 7686 |
Emma Earl Sandy Jamieson | Cairn Financial Advisers (Nominated Adviser) | Tel: +44 (0) 20 7213 0880 |
Jon Bellis | Beaufort Securities Limited (Joint Broker) | Tel: +44 (0) 20 7382 8300 |
Martin Lampshire
Rory Scott | Peterhouse Corporate Finance (Joint Broker)
Mirabaud Securities (Financial Advisers) | Tel: +44 (0) 20 7469 0930
Tel: +44 (0) 20 7878 3360 |
Tim Blythe Nick Elwes | Blytheweigh (Financial PR) | Tel: +44 (0) 20 7138 3204 |
** ENDS **