Newfield Resources is offering eligible shareholders the chance to buy up to 117.6 million fully paid ordinary shares in the company, raising around $17.6 million to fund the Tongo diamond mine's ongoing mine development and production ramp-up in Sierra Leone.
One option, exercisable at $0.25 per share, shall be appended to each of the two new shares acquired under the entitlement offer.
“We are pleased to offer eligible shareholders the opportunity to participate in this capital raising, which will help progress the ongoing development and production at the Tongo diamond mine over the next six months as we work towards concluding the proposed debt financing arrangements with the Africa Finance Corporation (AFC),” said company executive director Karl Smithson.
“The funds from the entitlement offer will enable the company to continue a number of development workstreams that will lead to increased production and processing capacity at the Tongo diamond mine.”
He said they are also planning to conduct detailed mine planning, scheduling, and budgeting of the Tongo Dyke-1 resource with a view to bringing the deposit into the future mine plan.
Mathew Nyaungwa, Editor in Chief of the African Bureau, Rough&Polished
