Newfield Resources Limited

Project And Debt Financing Update Of Tongo Diamond Project

Newfield Resources Limited(ASX: NWF) (Company) is pleased to announce that its wholly owned subsidiary, Sierra Diamonds Limited (SDL), has entered into a Conditional and Non-Binding Terms Sheet for a US$50 million secured debt facility with the AFC for the continuing development of the Tongo Diamond Mine into commercial production.


  • Conditional and Non-Binding Terms Sheet for a US$50 million debt facility (Facility) has been executed with the Africa Finance Corporation (AFC) for the continuing development of the Tongo Diamond Project (Project). Detailed due diligence is in progress with the AFC and its independent consulting groups.
  • The Facility will enable the production ramp-up at the Tongo Diamond Mine to be accelerated, construction of the designed 50tph processing plant and final recovery and advance the Tongo Dyke-1 kimberlite into development and production.
  • Recent operations have focused on stope mining of the eastern segment of the Kundu ore reserve with plans to establish development towards the west of Kundu being implemented.
  • Next diamond sale scheduled for mid-July 2023.

AFC is a multilateral financial institution established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.

Sixteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 40 member countries and has invested US$11.5 billion across Africa since its inception.

The key material terms of the Terms Sheet include:

Provision of the facility will be announced on completion of the conditions to financial close.

NWF Executive Director Mr Karl Smithson commented:

“We are delighted to have signed the Terms Sheet with the AFC, representing a significant milestone for the Company. The due diligence progress preceding this Terms Sheet has been extensive, and we are pleased with the progress made to date. Due diligence is ongoing, led by the AFC and its independent consulting groups concerning technical, financial, environmental and social aspects of the Company and the Tongo Mine development.

“The Board of Directors are of the opinion that the Terms Sheet is a crucial step forward and provides a framework for the parties to align on the financing terms for the Project.

“Through its own funding, Newfield has substantially advanced the Tongo Mine from exploration to development and into first production. We believe that the right financing partnership will enable the Tongo Mine to move to full-scale production and create many positive benefits for all stakeholders, including the local communities, the Government of Sierra Leone and the shareholders of Newfield.

“Our capable technical team, including recently appointed technical adviser to the Board, Koos Visser, is actively progressing off and on-site due diligence processes with the AFC’s independent advisor groups, and we look forward to providing further updates as we progress.”

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.

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