Stellar Agrees to Takeover Deal

RAPAPORT...Stellar Diamonds has struck a $10.8 million (GBP 7.7 million)takeover agreement with Newfield Resources, raising its hopes of bringing itsSierra Leone mine into production, the company said Monday. Stellar, which operates the Tongo-Tonguma project, last week said it might not be able toaccess enough financing for it to remain in operation if talks fell through. Under the deal, Stellar shareholders will receive 0.76Newfield shares for every Stellar share they hold, representing a 154% premiumto Stellar's closing share price on Friday. Existing Stellar shareholders willown just over 8% of the combined group. Stellar stock soared 52% on Mondayafter the announcement. "Not only does this come at a significant premium forStellar shareholders, but it also secures the funding at a premium for thedevelopment of the Tongo-Tonguma project," said Stellar CEO Karl Smithson, whowill join Newfield's board. "Furthermore, the enlarged company will have thefinancial and technical capacity to deliver the project, which we believe canoffer long-term and sustainable cash flows to all shareholders."