Debt financing for Tongo Diamond Project

Jul 15, 2023

Newfield Resources Limited (NWF) announces that its wholly owned subsidiary, Sierra Diamonds Limited (SDL), has entered into a Conditional and Non-Binding Terms Sheet for a US$50 million secured debt facility with the AFC for the continuing development of the Tongo Diamond Mine into commercial production.

AFC is a multilateral financial institution established in 2007 to be the catalyst for private sector-led infrastructure investment across Africa. AFC’s approach combines specialist industry expertise with a focus on financial and technical advisory, project structuring, project development, and risk capital to address Africa’s infrastructure development needs and drive sustainable economic growth.

Sixteen years on, AFC has developed a track record as the partner of choice in Africa for investing and delivering on instrumental, high-quality infrastructure assets that provide essential services in the core infrastructure sectors of power, natural resources, heavy industry, transport, and telecommunications. AFC has 40 member countries and has invested US$11.5 billion across Africa since its inception.

NWF Executive Director Karl Smithson commented, “We are delighted to have signed the Terms Sheet with the AFC, representing a significant milestone for the Company. The due diligence progress preceding this Terms Sheet has been extensive, and we are pleased with the progress made to date.

Due diligence is ongoing, led by the AFC and its independent consulting groups concerning technical, financial, environmental and social aspects of the Company and the Tongo Mine development. The Board of Directors are of the opinion that the Terms Sheet is a crucial step forward and provides a framework for the parties to align on the financing terms for the Project.

Through its own funding, Newfield has substantially advanced the Tongo Mine from exploration to development and into first production. We believe that the right financing partnership will enable the Tongo Mine to move to full-scale production and create many positive benefits for all stakeholders, including the local communities, the Government of Sierra Leone and the shareholders of Newfield.

Our capable technical team, including recently appointed technical adviser to the Board, Koos Visser, is actively progressing off and on-site due diligence processes with the AFC’s independent advisor groups, and we look forward to providing further updates as we progress.”

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