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Newfield spreads reach to Sierra Leone

Newfield spreads reach to Sierra Leone

Photo by Bloomberg

2nd December 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Junior Newfield Resources has entered into a conditional agreement to acquire Sierra Leone-based diamond explorer Allotropes Diamonds.

Under the terms of the acquisition agreement, Newfield would issue about 29-million fully paid ordinary shares and 29-million options. The options could be exercised at 30c each, before June 15, 2016.

Newfield told shareholders on Monday that the acquisition was a sound diversification of the company’s current exploration activities, adding that Allotropes project area represented a highly prospective advanced alluvial diamond project with near-term production potential.

As part of the acquisition, Newfield would undertake a A$6-million capital raising, which would be used to continue its exploration activities in Western Australia, and would fund exploration activities at the Sierra Leone asset.

The Allotropes exploration licence covers some 101.52 km2 along the diamondiferous Sewa river, in Sierra Leone, which has been subject to previous exploration.

Newfield said that its immediate focus would be an intensive ore resource delineating and reconnaissance bulk sampling campaign of the alluvial diamond occurrences, to verify the extent of the resource and the diamond content.

Edited by Creamer Media Reporter

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