- Newfield Resources (NWF) secures funding for its Tongo diamond mine in Sierre Leone through a sales agreement with DelGatto Diamond Finance Fund
- The asset purchase and sales agreement will see DelGatto pay an initial $1.78 million to NWF within 12 months from future diamond sales
- Newfield’s Executive Director, Karl Smithson, says the deal will help to increase production at Tongo and boost general working capital
- The Director of DelGatto’s Johannesburg office says the firm is “thrilled” to assist with the growth of Tongo, which it believes is a “generational” asset
- NWF shares are down 1.28 per cent to 38.5 cents at 10:59 am AEDT
After market close on Monday, Newfield Resources (NWF) announced it had secured funding for its Tongo diamond mine in Sierre Leone through a sales agreement with DelGatto Diamond Finance Fund.
The asset purchase and sales agreement will see DelGatto pay an initial US$1.2 million (A$1.78 million) to NWF within 12 months from future diamond sales.
Newfield Executive Director Karl Smithson said the company was pleased with the deal, which would help to increase production at Tongo.
“We found DelGatto to be knowledgeable and flexible to our requirements and look forward to a long-term relationship with DDFF,” Mr Smithson said.
In addition to funding continued development at the mine, Newfield said the financing would boost general working capital.
Director of DelGatto’s Johannesburg office George Mashinini said the firm was “thrilled” to assist in the growth of the Tongo diamond mine, which it believed was a “truly generational asset”.
Newfield operates the mine under its subsidiary, Sierra Diamonds, and the first diamond sale was in May this year.
Shares in NWF were down 1.28 per cent to 38.5 cents at 10:59 am AEDT.