Newfield Secures A$55 Million Funding Facility

Newfield Resources Limited (Newfield or Company) (ASX: NWF) is pleased to announce it has entered into a $55 million equity funding facility (Facility Agreement) with SBC Global Investment Fund (Investor), a fund of L1 Capital Global Opportunities Master Fund (L1 Capital).

---

HIGHLIGHTS

• Access up to $55m in equity capital over 36 months (in addition to the initial placement below) to fund ongoing expansion of the Tongo Diamond Mine
• Initial placement of 1,453,488 Shares to the Investor at an issue price of $0.344, raising $500,000 (before costs) on signing of Facility Agreement

The funding facility will provide Newfield access to committed capital to advance the Company’s Tongo Diamond Mine in Sierra Leone towards commercial production. The funding facility will allow flexibility on the timing of any placement to raise capital, but will not oblige the Company to proceed with any placement. The Board of Directors welcomes this new funding initiative which will provide the Company with access to both working and expansion capital over the next 36 months.

Executive Director, Karl Smithson, commented “We are very pleased to have the support of a high-quality, independent global investment group. This partnership enables Newfield to expedite the development of its Tongo diamond mine (Tongo Diamond Project) and advance the project into commercial production.”

Project Overview

Newfield’s flagship Tongo Diamond Project entered production earlier this year with carats mined from both underground and surface locations contributing to the first production sale of more than 5,000 carats in Antwerp in May 2022, at a sales price of US$262 per carat. This funding facility will contribute to the continued development and mining activities to advance the Kundu and Lando declines and to the opening of additional mining and production areas from the Kundu Kimberlite and the commencing of production from the Lando Kimberlite.

The Company will also deploy a portion of these funds to conduct work on the nearby Tongo Dyke-1 ore body which is aimed at converting the upper 100m of the declared JORC Compliant indicated and inferred mineral resource of 1.4 million carats (at a +1.0mm cut off size and a cut-off grade of 1.6 carats per tonne) to a mineral reserve estimate. This work will include drilling for geotechnical and hydrology studies, detailed mine design, mine scheduling and engineering studies. The work will also include locating an appropriate site for a box cut and portal entrance for the planned decline which will afford access to the Tongo Dyke-1 ore body at depth. This work is an important step toward fulfilling Newfield’s strategy of expanding and increasing production of the Tongo Mine by bringing additional kimberlites and flexibility into the existing life of mine plan. An enhanced and longer life of mine for the Company will be the objective. Part of this work will also investigate ways to reduce the production and overall cost per carat across the mine.

Funding Facility Terms

Under the funding facility, capital may be accessed by the Company making placements of shares at the Company’s election by the Company issuing “placement notices” to the Investor specifying a “minimum acceptable price” for the issue of fully paid ordinary shares (Shares) by the Company to the Investor. The issue price of placement Shares will be the higher of 95% of the average of 5 daily volume weighted average prices (VWAPs) of Shares from among the VWAPs on ASX over a 30-trading day period after issue of a placement notice (subject to applicable adjustment) and 95% of a minimum acceptable price notified by the Company.

The number of Shares that Investor may be required to subscribe for under a placement notice is 10 times the average number of Shares traded on ASX during the 15 trading days prior to the date of the placement notice.

Click here for the full ASX Release

This article includes content from Newfield Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.