Newfield Resources Ltd (ASX:NWF) has entered into a binding agreement to issue 10 unlisted, unsecured short-term bearer bonds with a face value of US$1 million to Fidelitas Deutsche Industrie Holding AG, which is a group entity of Deutsche Balaton AG, a current shareholder of the company.
The bonds are being issued at a price of US$946,000 (94.6% of face value) with a coupon interest rate of 7.5% per annum and a maturity date of July 14, 2023.
This additional funding will be used to advance development of the flagship Tongo Diamond Mine in Sierra Leone.
Tongo Diamond Mine
The Tongo Diamond Mine Development comprises two adjacent mining licences covering a combined area of 134 square kilometres in eastern Sierra Leone.
Newfield is advancing underground excavation at Tongo, which has already yielded 1,180 carats of diamond from processing 504 tonnes of underground and surface bulk samples during the September quarter of 2022.
The company achieved a combined process grade of 2.34 carats per tonne at a more than 1.2-millimetre cut-off.
NWF also recently secured 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.
“We are thrilled to assist in the growth of the Tongo Diamond Mine, which we believe that it is truly a generational asset,” DDFF’s Johannesburg office director George Mashinini said at the time.
“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.