Newfield Resources' subsidiary signs terms sheet for Tongo Diamond Mine US$50 million debt facility
Melbourne, Victoria
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July 12, 2023 12:00 PM Eastern Daylight Time
Newfield Resources Ltd CEO, Karl Smithson, sat down with Proactive's Tom Warner to discuss the company's pending funding transaction with the African Finance Corporation (AFC) worth $65 million.
The funding package consists of a $50 million debt facility and $15 million in equity.
The AFC is an institutional finance organisation that invests in African development projects, including natural resources, infrastructure, power, and telecoms.
Smithson believes that this funding will support the company's diamond project, enabling them to achieve commercial production in the next two to three years, with an initial target production of 200,000 carats per year.
The funds will also be used to construct a larger processing plant to accommodate growing capacity. Despite short-term fluctuations in diamond prices, Smithson is optimistic about the long-term outlook due to the decreasing supply and increasing demand for luxury products, particularly from emerging economies like India and China.
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