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Stellar’s Loss Widens Before Strategic Acquisition
Dec 22, 2016 7:06 AM
By Rapaport News
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RAPAPORT... Stellar Diamonds reported its loss more than doubled in the
past fiscal year and revenue slumped. This comes ahead of a “transformational”
acquisition designed to turn the exploration company into a fully-blown
commercial miner.
Revenue fell 19 percent to $499,725 in the 12 months that
ended June 30, driving the company into a loss of $7.1 million versus $3
million a year ago. Sales were all from the Baoulé mine in Guinea.
The company has “largely” agreed the terms of its
acquisition of the lease on Octea Mining’s Tonguma deposit, located adjacent to
Stellar’s existing Tongo project in eastern Sierra Leone. After this acquisition,
Stellar will advance from its exploration and development stage to commercial
mining, the company explained. The combined Tongo-Tonguma project is expected to production of up to 250,000 carats per year.
“We look forward to the next year with considerable
excitement as we pursue a transformational acquisition while at the same time
maintain exposure to our quality portfolio of diamond assets in West Africa,” Smithson (pictured) said in a statement Thursday.
In addition, Stellar agreed to enter a joint venture with
Dubai-based Citigate Commodities Trading to share proceeds of the
Baoulé mine. The deal is expected to help Stellar focus its management
and financial resources on the Tongo-Tonguma project.
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Tags:
Baoulé, Citigate Commodities Trading, Guinea, Karl Smithson, mining, Octea Mining, Rapaport News, stellar, Stellar Diamonds, Tongo-Tonguma, Tonguma
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