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Stellar Agrees to Operate Sierra Leone Mine
Feb 23, 2017 4:50 AM
By Rapaport News
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RAPAPORT... Stellar Diamonds has entered a subcontracting arrangement to
operate the Tonguma mine in Sierra Leone, after opting out of a deal to acquire
the deposit.
Under the arrangement, Stellar will run the mine and sell
the resulting diamonds, paying a percentage of revenues to the project’s owner,
Octea Mining.
Stellar, which already owns the adjacent Tongo mine, had
initially been in talks to acquire Tonguma from Octea – a move that would have enabled
combined annual production of 250,000 carats.
Instead, the new agreement will see Stellar paying Octea 10 percent
of proceeds from sales after deduction of government royalties, but only after
Stellar has recouped an amount equal to its investment, and after Octea has
received an initial revenue-share payment of $5 million.
The deal is pending legal and government approval, with
Stellar retaining exclusivity to it until April 30.
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Tags:
mining, Octea Mining, Rapaport News, Rough Diamonds, Sierra Leone, stellar, Stellar Diamonds, tongo, Tonguma
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