Delgatto Diamond Finance Fund will provide the necessary capital for Newfield Resources to develop its Tongo mine in Sierra Leone.
The funding, which comes through an asset purchase and sales agreement, will enable the miner to increase production at Tongo and maximize value for its investors, Newfield executive director Karl Smithson explained Monday.
Tongo, which is located in eastern Sierra Leone, contains 11 identified diamondiferous kimberlites, the company noted. Five of those have an indicated and inferred diamond resource estimate of 8.3 million carats. Newfield held its first diamond sale in May 2022, with its rough averaging $262 per carat.
Newfield took control of Tongo in 2018 through a $10.8 million takeover agreement with Stellar Diamonds. Prior to that, the mine was owned by Beny Steinmetz through Koidu Holdings.
“With 80% of its run-of-mine product being gem quality, Tongo is truly a unique diamond mine,” said Chris Del Gatto, CEO of Delgatto Diamond Finance Fund.
Image: The Tongo diamond mine. (Newfield Resources)