Stellar Diamonds updates on Tongo mining-licence application

Stellar Diamonds has been verbally told its application for a mining licence over its 100%-owned Tongo project in Sierra Leone has approved by the Minerals Advisory Board there.

The company said the licencing process remained subject to the National Minerals Agency formally writing to Stellar to convey the decision, and drawing up a licence agreement to be forwarded to the minister of mines for approval.

"Thereafter the fiscal terms of the mining licence will be negotiated between Stellar and the government of Sierra Leone and the resulting mining concession agreement will then require ratification through parliament," Stellar said in a statement.

Meantime, the diamond development company said it was engaging with the local Environmental Protection Agency regarding the required environmental licence, which must also be issued before mining could begin.