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PUBLIC
NOTICE 1. Background The Government of Sierra Leone originally granted a Mining Lease for the Tongo Diamond Field to Rex Diamond Mining Corporation Limited, a small diamond mining and exploration company with its head office in Antwerp in February 1994. Following the official declaration of peace, announced in early 2002, companies that had been active in Sierra Leone prior to the war were invited to continue their work. The declaration of peace removed the 'force majeure' that had been declared by all foreign companies operating in Sierra Leone following the outbreak of renewed hostilities on May 25th 1997. A letter issued by the Ministry of Mines to exploration and mining companies in mid 2002 required them to confirm that they would restart their operations or give up their mineral rights. Rex Mining failed to commit sufficient resources to their exploration programmes. As a result the Government cancelled their Tongo and Zimmi mining leases in October 2003. 2. Tender Procedure In late 2003 a number of junior exploration and mining companies expressed an interest in obtaining mineral rights in the Tongo Diamond Field. In an effort to introduce greater transparency into the granting of a new mineral right for the former mining lease area in the Tongo Diamond Field, the government of Sierra Leone decided to publicly offer the former mining lease area open to bids (for exploration licences) from interested companies. The advertisement published in local newspapers and the Internet stated that application forms could be obtained from the Geological Survey. The advertisement asked that in addition to providing ten completed application forms, interested parties should make a non-refundable payment of US$5,000 by bank draft to the Director of Mines. The advertisement included a statement that 'Companies are guaranteed a Mining Lease in accordance with the Mines and Mineral Act 1996 if prospects prove economically viable.' Other than some basic details on the dykes and 'blows' that had been discovered previously no further geological information was provided. 3. Previous Applications The submissions from two Companies: West Africa Trade House and Gem Fields Resources Limited for a licence covering the former Tongo Mining Lease Area were received respectively shortly after the Government had officially cancelled the Rex Mining leases. The present policy of the government is to grant an Exploration Licence on a 'first come first served basis' as described in the Minerals Act. However, the Government having considered the amount of interest being expressed in this ar3ea by exploration and mining companies instead decided to invoke Section 15 (3) of the Mines and Minerals Act, which states 'Notwithstanding any other provisions of this Act, the Minister may designate an area in which minerals have been discovered and may cause any unallocated mineral right to be awarded by public tender.' 4.
Bid Evaluation The stated commitment of Koidu Holdings SA to a rapid evaluation of the Tongo Diamond Field, the experience of their staff in appropriate underground mining methods and technology, and the work the company has already done in bringing the Koidu pipes into production must have been considered in the evaluation of the bids for a unanimous decision by all the committee members. Koidu Holdings SA is therefore declared the winner of the bid. 5. Bid Evaluation Committee The Government appointed a ten-man committee to evaluate the bid for the Tongo Diamond Field Exploration Licence, as follows: 1. Honourable
Vice President - Chairman This is the end of the Public Notice from the office of the Honourable Vice President ******************************** |
