AMN - SIERRA LEONE: Stellar negotiates note extension

Stellar Diamonds, the London-listed diamond development company focused on West Africa, has negotiated a two-month extension to the long-stop dates with the noteholders of its two outstanding Convertible Loan Notes (CLNs). This will assist the company’s efforts to advance the Tongo-Tonguma Diamond Mine in Sierra Leone.

Stellar’s chief executive Karl Smithson said,“Stellar is undergoing a transformation from an explorer to a mine developer. I would like to thank the noteholders for their continued support as we progress towards the commercial development of the 4.5 million carat Tongo-Tonguma underground kimberlite diamond mine.

“We have made key advances in recent weeks in terms of signing the binding Tribute Mining Agreement and signing the contract for the Front End Engineering and Design for the initial mine development.

“With a low capex requirement of US$32 million, the proposed Tongo-Tonguma mine has the potential to be the second largest kimberlite diamond mine in West Africa, with forecast production levels of 200,000 carats per annum, generating revenues of over US$45 million per annum over a minimum life of mine of 21 years.”

www.stellar-diamonds.com