Newfield announces entitlement offer to raise funds for Sierra Leone mine

27th October 2023

By: Darren Parker

Creamer Media Contributing Editor Online

     

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ASX-listed Newfield Resources is offering eligible shareholders the opportunity to participate in a pro rata non-renounceable entitlement offer of up to about 117.6-million fully paid ordinary shares in the company to raise about $17.6-million before costs.

The entitlement offer will comprise of a two for 15 non-renounceable entitlement offer at $0.15 a share.

Every two new shares acquired under the entitlement offer will be accompanied by one attaching option exercisable at $0.25.

Partial underwriting has been secured for about $7.8-million from hedge fund Truth Wealth Management.

Proceeds from the entitlement offer will support ongoing mine development and production ramp-up at the high-grade Tongo diamond mine, in Sierra Leone.

“We are pleased to offer eligible shareholders the opportunity to participate in this capital raising, which will help progress the ongoing development and production at the Tongo diamond mine over the next six months as we work towards concluding the proposed debt financing arrangements with the Africa Finance Corporation.  

“The funds . . . will enable the company to continue a number of development workstreams that will lead to increased production and processing capacity of the Tongo diamond mine.  In addition, we plan to conduct detailed mine planning, scheduling and budgeting of the Tongo Dyke-1 resource with a view to bringing the deposit into the future mine plan,” Newfield executive director Karl Smithson says.

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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