Newfield Resources Ltd (ASX:NWF) has entered an agreement with DelGatto Diamond Finance Fund (DDFF) for an initial amount of US$1.2 million (before costs), payable within 12 months from future diamond sales at the Tongo Diamond Mine in Sierra Leone.
The asset purchase and sales agreement will assist the company with its continued development of the mine as well as for general working capital.
Further capital
Executive director Karl Smithson said: “We are pleased to be working with the team at DelGatto and this deal gives the company the further capital to continue our Tongo Diamond Mine development, increase our production and maximise value for our investors.
"We found DelGatto to be knowledgeable and flexible to our requirements and look forward to a long-term relationship with DDFF.”
About DelGatto Diamond Finance
DelGatto Diamond Finance, through its flagship fund, the DDFF, provides flexible financing structures for diamond companies along the entire supply chain.
With offices in New York, Palm Beach, London, Dubai and Johannesburg, DelGatto Diamond Finance is a finance company founded and operated by diamond and jewellery industry experts.
Since its inception in 2018, the firm has financed more than 350 companies worldwide.
“A generational asset”
DDFF’s Johannesburg office director George Mashinini said: “We are thrilled to assist in the growth of the Tongo Diamond Mine, which we believe that it is truly a generational asset.”
“With 80% of its run-of-mine product being gem quality, Tongo is truly a unique diamond mine,” added DDFF co-founder and CEO Chris Del Gatto.
About Tongo Mine
The Tongo Diamond Mine Development comprises two adjacent mining licences covering a combined area of 134 square kilometres in eastern Sierra Leone.
Tongo hosts 11 identified diamondiferous kimberlites, only five of which are incorporated in the JORC-compliant indicated and inferred diamond resource estimate of 8.3 million carats. Of this resource, a 1.1 million carat probable reserve, has been estimated.
Newfield, under its subsidiary company Sierra Diamonds, has developed the Tongo Mine into production achieving its first successful diamond sale in May 2022 where it achieved an average price of US$262 per carat.