Diamond News – diamond mining news: The combined venture of the merger between West African Diamonds (WAD) and Stellar Diamonds, a privately held diamond explorer and miner, will relist in the current quarter, subject to approvals and a successful fundraise, says a statement from WAD.
The combined venture will have two producing diamond mines in Guinea, Bomboko and Mandala, as well as three joint ventures in Sierra Leone. The new company will also hold 100% interests in two high grade kimberlite projects, Droujba in Guinea and Tongo in Sierra Leone.
The agreement being proposed to shareholders will combine WAD and Stellar on a 25/75 % basis, prior to new funding. Subject to successful funding, the new enlarged company will increase mining capacity and revenue at both existing alluvial mines as well as continuing development of the kimberlite projects.
The Board of WAD considered the company too small to attract significant investor interest and deemed it essential to grow by consolidation. Merging with Stellar will result in a company with two producing mines delivering robust cash flow. The planned financing will strengthen the balance sheet and enable WAD’s high grade kimberlite projects to be developed.
Related posts:
- West African Diamonds Renames to Stellar Diamonds; John Teeling Steps Down as Chairman
- Agreement Reached Over Merger Between Stellar Diamonds and West African Diamonds
- West African Diamonds In Joint Venture with Thunderball Limited to Explore Pipe 3 in Koidu, Sierra Leone
- Stellar Diamonds Acquires Kono Diamond Project in Sierra Leone
- 37 Carat Fancy Yellow Diamond Recovered at Mandala Diamond Mine in Guinea
