Citigate Commodities inks deal with Stellar Diamonds

03/08/2016 05:50 AST

Citigate Commodities Trading Limited has entered into an agreement with London Stock Exchange listed diamond development company Stellar Diamonds to acquire mines in Guinea and Liberia.

The Dubai-based firm said the agreements include a Baoulé kimberlite mining project in Guinea that has a resource estimation of approximately three million carats and two exploration licences in western Liberia, which have recently been awarded to Stellar Diamonds.

"Adding the Guinean and Liberian mines to Citigate's portfolio gives us substantial leverage in the GCC by securing additional assets in two of West Africa's most prolific diamond producing nations," said Tohib Iyiola, founder and CEO of Citigate Commodities Trading Limited.

Citigate Commodities Trading Limited - via its subsidiary Safa Afrique Limited, a diamond exploration and development company appointed to develop and operate West Africa's diamond resources - will fully acquire the Guinean and Liberian mines pursuant to the joint venture agreements with Stellar Diamonds.

"With one mining project already in production, Citigate is working to rapidly expand its portfolio of projects for its West African diamond operator, SafaAfrique, in order for it to develop and flourish," Iyiola said.

Citigate Commodities Trading Limited looks to increase and secure assets in West Africa's renowned diamond producing nations, Guinea, Liberia, and Sierra Leone. The joint venture agreements with Stellar Diamonds offers Citigate significant advantages in terms of sourcing and supply, which will ultimately benefit the company's regional manufacturing and retail partners as the journey of becoming the Gulf's number one diamond exploration, mining and development company continues.

Stellar completed a 100,000 tonne trial mining exercise at Baouléin June 2016 from which total sales generated equalled $1,228,000. It is anticipated that a further 50,000 tonnes of kimberlite will be mined and processed in order to determine with more accuracy the diamond grade and value of the east lobe. At the current +1.25mm grade of 13.3cpht this could yield up to a further 6,600 carats for sale. Previous sales from the east lobe achieved $156 per carat.

Khaleej Times