31st May 2016 07:32
LONDON (Alliance News) - Stellar Diamonds PLC on Tuesday said it has been verbally informed that the Minerals Advisory Board has approved its mining licence application for its Tongo project in Sierra Leone, taking a further step towards being granted a mining concession.
The diamond development company focused on West Africa said, following this initial approval, it still requires approval from the National Minerals Agency, which is the licensing body of the Sierra Leone Ministry of Mines. The NMA must formally write to Stellar Diamonds to inform the company of its decision and then draw up a licence agreement to be forwarded to the Minister of Mines for approval.
Once this has taken place, the fiscal terms of the mining licence will be negotiated between Stellar Diamonds and the government of Sierra Leone, Stellar Diamonds said, and the resulting mining concession agreement will then require ratification through parliament.
In the meantime, Stellar Diamonds said it is engaging with the country's Environmental Protection Agency with regard to the required environmental licence, which must also be issued before mining can commence.
Shares in Stellar Diamonds were up 15% at 7.50 pence on Tuesday.
By Hannah Boland; [email protected]; @Hannaheboland
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