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March 14, 2018

Newfield Resources agrees on terms of acquisition with Stellar Diamonds

Newfield Resources (NWF) has signed an agreement to acquire the entire issued and to-be-issued share capital of Stellar Diamonds for a sum of £7.74m.

Newfield Resources (NWF) has signed an agreement to acquire the entire issued and to-be-issued share capital of Stellar Diamonds for a sum of £7.74m.

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NWF owns gold projects in Western Australia along with an advanced diamond project in Sierra Leone, comprising four exploration licences spread over an area of 780.9km².

Stellar owns the Tongo-Tonguma kimberlite development, which is situated to the north-east of NWF’s Allotropes diamond project.

Each Stellar shareholder will receive 0.7622 of a new NWF share for each share currently held under the terms of the planned combination.

“The enlarged company will have the financial and technical capacity to deliver the project, which we believe can offer long-term and sustainable cash flows to all shareholders.”

Stellar Diamonds CEO Karl Smithson said: “The board of Stellar is delighted to recommend to our shareholders the proposed merger and combination of business interests with Newfield.

“Not only does this come at a significant premium for Stellar shareholders, but it also secures the funding at a premium for the development of the Tongo-Tonguma project.

“Furthermore, the enlarged company will have the financial and technical capacity to deliver the project, which we believe can offer long-term and sustainable cash flows to all shareholders.”

The NWF management noted that the acquisition complements its existing operations in Sierra Leone.

In addition, the deal is expected to offer the potential for substantial near and long term cash flows.

NWF has also announced an underwritten rights issue to raise around A$30m ($23.6m) via the placement of more than 200 million shares.

The proceeds from the rights issue will fund the advancement of the Tongo-Tonguma mine into the production phase.

Stellar will be able to use the funds to complete the Front-End Engineering Design (FEED) study and mine plan drilling before commencing the development of the Tongo-Tonguma mine.

Smithson will be invited to join the NWF board as an executive director upon completion of the acquisition.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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