Stellar Diamonds said it received an unsecured $3 million loan from Newfield Resources (NWF) which will be used for the commencement of work on the front end engineering design stage of the mine plan for the Tongo-Tonguma project and mine plan drilling.
The company said it remained unchanged that Australian exploration company had at this time received support for the possible offer from its shareholders and directors representing, in aggregate, 29.80 percent of Stellar’s issued share capital.
“Whilst the negotiations with NWF are very advanced at this stage and this announcement has been made with the approval of NWF, there can be no certainty that any offer will be made for the company nor as to the final terms of any offer,” it said.
Stellar recently reported that it was in advanced negotiations regarding a possible share offer for the entire issued and to-be-issued share capital of the company by NWF.
Under the terms of the offer, Stellar's shareholders and the holders of rights over its ordinary shares would receive in aggregate 95.5-million shares in NWF, which would equate to about 16.4 percent of the enlarged share capital of NWF.
The offer seeks to merge the business interests of NWF and Stellar in Sierra Leone and bring the needed funding to advance the high-grade and high-value Tongo-Tonguma project, which Stellar holds through its own licences and the tribute mining and revenue share agreements with Octea Mining.