NWF newfield resources limited

News: Newfield Resources raises funds for Sierra Leone diamonds

  1. Newfield Resources (ASX:NWF) has boosted its cash position by $2.5 million following a placement of 8.3 million shares at $0.30.

    The raising was made to institutional and sophisticated investors, including existing shareholders and a range of new investors.

    Newfield last traded at $0.52 before the placement was made.

    The funds will progress the company’s diamond project in Sierra Leone, which covers three granted tenements over 540 square kilometres.

    Adding to the potential, there is demonstrated historical production of gem quality diamonds from alluvial gravels.

    Historical and recent bulk sampling pits return average grade of 47 cpht and 43cpht respectively.

    Newfield has purchased an earth moving fleet and Dense Media Separation plant funded by equity, with the plant commissioning and first diamond production milestone scheduled for December quarter 2014.

    The company targets generation of internal cash flow from alluvial operation.

    There is also the potential to build on its tenement position in the future.


    Sierra Leone diamond history

    In 2012 541,000 carats were exported from Sierra Leone, but this peaked at around 2,000,000 carats a year during the 1970’s.

    A civil war from 1991 – 2002 had a dramatic impact on exports, which dropped to a low of 9,300 carats in 1999.

    In 2000 the country adopted the Kimberley Process Certification Scheme.

     

 
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