Stellar Diamonds PLC Environmental Licence Granted for Tongo Project (3814U)

TIDMSTEL

RNS Number : 3814U

Stellar Diamonds PLC

24 October 2017

NOT FOR DISTRIBUTION IN THE UNITED STATES OR FOR DISSEMINATION TO US NEWS WIRE SERVICES.

24 October 2017

AIM: STEL

Stellar Diamonds plc

("Stellar" or the "Company")

Environmental Licence Granted for Tongo Project, Sierra Leone

Stellar Diamonds plc (AIM: STEL), the London listed diamond development company focused on the Tongo kimberlite development project ("Tongo") in Sierra Leone, announces the award of the Tongo Environmental Licence from the Environmental Protection Agency ("EPA") of the Government of Sierra Leone. It is now expected that the National Minerals Agency will draw up the Tongo Mining Licence for consideration and signature by the Minister of Mines and Mineral Resources.

Chief Executive Karl Smithson commented:

"The receipt of the Environmental Licence marks an important milestone in the proposed development of the Tongo deposit into commercial production. The next milestone will be the drafting of the Tongo Mining Licence. Tongo forms part of the proposed 4.5 million carat combined Tongo-Tonguma mine development which has the potential to be the second largest hard rock diamond mine in West Africa and have one of the highest $/t kimberlite ore values globally. We look forward to providing a further update in due course."

For further information contact the following or visit the Company's website at www.stellar-diamonds.com.

 
 Karl Smithson,     Stellar Diamonds plc        Tel: +44 (0) 20 
  CEO                Stellar Diamonds plc             7010 7686 
  Philip Knowles,                               Tel: +44 (0) 20 
  CFO                                                 7010 7686 
 Emma Earl          Cairn Financial Advisers    Tel: +44 (0) 20 
  Sandy Jamieson     (Nominated Adviser)              7213 0880 
 Jon Bellis         Beaufort Securities         Tel: +44 (0) 20 
                     Limited (Joint Broker)           7382 8300 
 Martin Lampshire   Peterhouse Corporate        Tel: +44 (0) 20 
                     Finance (Joint Broker)           7469 0930 
 
  Rory Scott         Mirabaud Securities 
                     (Financial Advisers)       Tel: +44 (0) 20 
                                                      7878 3360 
 Tim Blythe         Blytheweigh                 Tel: +44 (0) 20 
  Nick Elwes         (Financial PR)                   7138 3204 
 

About Stellar Diamonds plc

Stellar is an AIM listed (AIM: STEL) diamond development company focused on the 4.5 million carat high-grade and high value Tongo-Tonguma kimberlite diamond project in the world famous diamond fields of eastern Sierra Leone. An independently generated mine plan, based on over 66,000m of drilling that has been completed to date, envisages the production of over 4 million carats, generating gross revenues of more than US$1.2 billion, over a 21 year life of mine. Initial production at Tongo-Tonguma is scheduled to occur in the first year of development, building up to over 200,000 carats per annum, with a weighted average modelled diamond value of $229 per carat. The Tongo-Tonguma mine is estimated to give Stellar an attributable Post-tax NPV(8) of US$109 million and IRR of 30%.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

Caution regarding forward looking statements

Certain statements in this announcement, are, or may be deemed to be, forward looking statements. Forward looking statements are identi ed by their use of terms and phrases such as "believe", "could", "should" "envisage", "estimate", "intend", "may", "plan", "potentially", "will" or the negative of those, variations or comparable expressions, including references to assumptions. These forward looking statements are not based on historical facts but rather on the Directors' current expectations and assumptions regarding the Company's future growth, results of operations, performance, future capital and other expenditures (including the amount, nature and sources of funding thereof), competitive advantages, business prospects and opportunities. In particular, there is no guarantee that the Company will be able to complete the Tribute Mining Agreement. Such forward looking statements re ect the Directors' current beliefs and assumptions and are based on information currently available to the Directors.

A number of factors could cause actual results to differ materially from the results discussed in the forward looking statements including risks associated with vulnerability to general economic and business conditions, competition, environmental and other regulatory changes, actions by governmental authorities, the availability of capital markets, reliance on key personnel, uninsured and underinsured losses and other factors, many of which are beyond the control of the Company. Although any forward looking statements contained in this announcement are based upon what the Directors believe to be reasonable assumptions, the Company cannot assure investors that actual results will be consistent with such forward looking statements. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Subject to any continuing obligations under applicable law or any relevant AIM Rule requirements, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

** ENDS **

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October 24, 2017 02:00 ET (06:00 GMT)