Stellar Diamonds plc Signs Joint Ventures in Guinea and Liberia
December 11, 16(IDEX Online) – Stellar Diamonds plc, the diamond development company focused on West Africa, has signed joint venture agreements with Citigate Commodities Trading, a Dubai based commodities group.
The agreement concerns the company’s Baoulé kimberlite project in Guinea and two earlier stage exploration licenses in western Liberia which were awarded to Stellar in February 2016.
The company currently has a 75% interest in the Baoulé project and a 100% interest in the Liberia project.
The terms of the joint venture agreements remain as announced on July 28.
“Importantly, these joint ventures will allow the key management of Stellar to focus on the proposed Tongo-Tonguma transaction in Sierra Leone, which we believe offers significant value potential. The combined Tongo-Tonguma project demonstrated robust economics in a Preliminary Economic Assessment, with an estimated pre-tax project NPV(10) of $172 million, an IRR of 49%, and projected life of mine project revenues of $1.5 billion. We therefore look forward to focusing our efforts on the advancement of Tongo-Tonguma, whilst retaining exposure to Baoulé and the Liberian projects.”