leadf
logo-loader
viewStellar Diamonds PLC

Stellar Diamonds rises on Sierra Leone licence update

The National Minerals Agency has received the application

LesothoBrown_hires.jpg
Stellar is looking at a phased development of an open pit and subsequent underground mine

Stellar Diamonds’ (LON:STEL) mining licence application for the Tongo Dyke-1 diamond project in Sierra Leone is making good progress, it said today.

The National Minerals Agency has received the application and is considering it, while public disclosure meetings have been held over the environmental licence application.

Karl Smithson, chief executive, said while it is waiting for licence approval it is considering appropriate funding structures for the future commercial development.

Stellar is looking at a phased development of an open pit and subsequent underground mine. 

“This phased development model will not only create significant local employment opportunities but also support early cash flow generation and a long-term sustainable operation,” said Smithson.

A preliminary economic assessment indicated an initial 4 year open pit mining project would cost $24.8mln and produce around 118,000 carats of diamonds valued at $270/ct.

That would generate a pre-tax NPV of $53.2mln at a 10% discount rate and a pre-tax internal rate of return of 31%.

SP Angel said that Stellar Diamonds is at an important point in its development and efforts to engage with communities and other stakeholders should help build support for the project.

Shares rose 9% to 10.4p.

Quick facts: Stellar Diamonds PLC

Price: - -

AIM:STEL
Market: AIM
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

FOR OUR FULL DISCLAIMER CLICK HERE

Luckbox gets set for Toronto listing to 'continue building the story and...

Luckbox's Quentin Martin is preparing to list on Toronto’s TSX Venture Exchange after already managing to raise CA$6mln in the summer. Already well funded, Martin now wants to 'build the story, continue to build the investor base and drive value. We will be investing healthily...

9 hours, 32 minutes ago

2 min read