http://www.proactiveinvestors.co.uk Proactiveinvestors RSS feed en Fri, 21 Sep 2018 16:44:53 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[News - Stellar Diamonds' board recommends Newfield Resources merger ]]> http://www.proactiveinvestors.co.uk/companies/news/192984/stellar-diamonds-board-recommends-newfield-resources-merger-192984.html Stellar Diamonds PLC’s (LON:STEL) board is recommending a merger with Australian company Newfield Resources Limited, which also operates in Sierra Leone.

The deal was flagged at the start of last month and the two groups have now agreed terms.

READ: Stellar Diamonds reflects on “extremely difficult” market for funding and looks ahead to sale of company

Newfield will offer shares to the equivalent 12.5p per Stellar share (pre-rights issue), which values the diamond miner at £7.74mln.

The Aussie company will lend Stellar US$3mln to help it over its immediate short-term cash needs, while undertaking a right issue to raise A$30mln to re-finance the enlarged group.

Existing Stellar shareholders will own 8.14% of the group following the merger and financing.

The two boards believe that merger and funding will enable the Tongo-Tonguma diamond project to start commercial production.

NWF's own exploration in Sierra Leone has discovered kimberlites in its licence areas while bulk sampling from some alluvial deposits has resulted in diamond sales at over US$450 per carat.

Tongo-Tonguma lies to the north-east of NWF's Allotropes diamond project.

Shares in Stellar rose by 50% to 7.38p.

--adds share price--

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Mon, 12 Mar 2018 08:42:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/192984/stellar-diamonds-board-recommends-newfield-resources-merger-192984.html
<![CDATA[News - Stellar Diamonds reflects on “extremely difficult” market for funding and looks ahead to sale of company ]]> http://www.proactiveinvestors.co.uk/companies/news/192585/stellar-diamonds-reflects-on-extremely-difficult-market-for-funding-and-looks-ahead-to-sale-of-company-192585.html Stellar Diamonds PLC (LON:STEL) chief executive Karl Smithson reflected on the “extremely difficult” market to raise new funds as the mine developer issued results for a period which preceded its agreement to sell the company.

“The interim reporting period has primarily been focused on sourcing the necessary funding to bring the Tongo-Tonguma project into production.  The capital markets in the UK have proven extremely difficult to raise funds for junior mining companies in recent years,” Smithson said.

READ: Stellar Diamonds’ shares finally back on AIM

“Furthermore, the market capitalisation of Stellar during the last six months hovered around the US$2mln level, which provided additional challenges of raising capital to develop the mine in Sierra Leone.”

The Australian Securities Exchange listed buyer, Newfield Resources' takeover proposal, which came in early February, was pitched at a premium price and the buyer also provided a US$3mln loan to keep the diamond project moving forward while the deal is progressed to completion.

“The loan will also be used to pay legal and corporate financial advisor costs including those related to the possible offer for the company.

“Working capital will therefore remain constrained as we continue discussions with Newfield Resources regarding the possible offer.”

Among the milestones highlighted in Stellar’s results statement was the disposal of the group’s Guinean assets, for a total of US$1.25mln, which took place in the first half of 2017.

In terms of its financial results, the company reported a US$984,928mln loss for the year, and it ended 2017 with just over US$50,000 of cash and equivalents.

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Mon, 05 Mar 2018 08:03:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/192585/stellar-diamonds-reflects-on-extremely-difficult-market-for-funding-and-looks-ahead-to-sale-of-company-192585.html
<![CDATA[News - Stellar Diamonds’ shares finally back on AIM ]]> http://www.proactiveinvestors.co.uk/companies/news/173816/stellar-diamonds-shares-finally-back-on-aim-173816.html Stellar Diamonds PLC’s (LON:STEL) shares are back trading on AIM following a six month lay-off.

Its shares were suspended from trading back in August when it first announced the details of its merger, via a reverse takeover, with Octea Mining.

The merger effectively combines Stellar’s Tongo undeveloped mine with Octea’s nearby Tonguma project.

The resumption to trading comes as Stellar told investors it has raised £324,500 through the issue of 5.9mln shares at 5.5p each.

The company will look to raise a further £250,000 through an open offer of up to 4.5mln shares at the same 5.5p price.

The open offer is available to all qualifying shareholders on the basis of 1 new share for every 8.295 existing shares.

Stellar said several directors were also ploughing a combined £20,000 of their own cash into the fundraising.

The money will go towards the completion of the proposed Tribute agreement over the high-grade 4.5mln carat resource of the Tongo-Tonguma mine project, as well as for paying existing creditors and topping up the coffers.

Stellar estimates that the Tongo-Tonguma project has an estimated net present value of US$104mln and internal rate of return of 31% which is attributable to Stellar.

Shares in Stellar were down 25% to 5.4p shortly before midday.

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Mon, 27 Feb 2017 11:56:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/173816/stellar-diamonds-shares-finally-back-on-aim-173816.html
<![CDATA[News - Stellar Diamonds unveils Sierra Leone diamond merger ]]> http://www.proactiveinvestors.co.uk/companies/news/129550/stellar-diamonds-unveils-sierra-leone-diamond-merger-129550.html Stellar Diamonds PLC (LON:STEL) has revealed details of a deal that would see it form a much larger mining operation than it previously envisaged in Sierra Leone.

The AIM quoted group will, via a reverse takeover, merge with Octea Mining which effectively combines Stellar’s Tongo undeveloped mine with Octea’s nearby Tonguma project.

Together the consolidated project will be host to some 5mln carats which could be extracted through a single mining operation, while the new company’s portfolio would also include some 8mln carats of exploration targets.

Mining could come around a year after the two companies are combined, according to Karl Smithson, Stellar chief executive.

"The proposed transaction, if completed, will be transformational for Stellar and its shareholders,” Smithson said.

“Once in production the combined diamond mining operations will be the second largest in West Africa with an estimated maximum output at full production of approximately 250,000 carats per year of high value diamonds.”

Christo Swanepoel, Octea general manager, added: "We are very excited to be combining Octea's Tonguma project with Stellar's Tongo project and bring the enlarged project into production under Stellar's operational management.

“Stellar has long-standing expertise in Sierra Leone and the Tongo region in particular, which we believe will be of great benefit to the project.”

Stellar had trading in its AIM quoted shares suspended on August 19 pending news of the proposed deal, and the suspension is due to continue.

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Mon, 22 Aug 2016 09:00:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/129550/stellar-diamonds-unveils-sierra-leone-diamond-merger-129550.html
<![CDATA[News - Stellar Diamonds completes Baoulé sampling early ]]> http://www.proactiveinvestors.co.uk/companies/news/127039/stellar-diamonds-completes-baoul-sampling-early-127039.html Stellar Diamonds PLC (LON:STEL) has completed the 100,000 tonne bulk sample at its Baoulé kimberlite project in Guinea.

The company revealed 11,808 carats were recovered at an average grade of 11.4 carats per hundred tonnes (cpht), using a +1.25mm cut-off.

Stellar added that to date, more than 8,400 carats have been sold in three diamond sales, bringing in more than US$1mln in revenues. The higher quality gems have been achieving prices of up to US$6,800 per carat, it added.

The sale of a further 3,100 carats are planned later this month, with all of the diamonds extracted from the western lobe, which is generally yielding lower quality gems than the larger eastern lobe. The grade of the eastern lobe is clocking in at 13.3 cpht, compared to 9.8 cpht at the eastern lobe.

“This planned sale will add to US$1 million generated to-date from diamonds sold, which has contributed significantly to the costs of the exercise,” said Karl Smithson, chief executive officer (CEO) of Stellar Diamonds.

Meanwhile, the company is set to receive a further influx of funds via a shareholder loan. Shareholders Altus Strategies and Deutsche Balaton are to provide funding to the company of £465,000 in aggregate.

The proceeds of the loan will be used for working capital purposes as the company advances its mining licence application for its Tongo kimberlite project in Sierra Leone and establishes a maiden resource at its Baoulé.

The loan short-term loan bears an interest rate of 20% a year.

"The trial mining exercise at Baoulé has been successfully completed, ahead of schedule, through the processing of over 100,000 tonnes of kimberlite from the eastern and western lobes of the five hectare pipe,” noted CEO Karl Smithson. 

“A total of 929 stones greater than one carat have been yielded, including numerous high value gem and fancy coloured (yellow) diamonds. Additionally as announced on 15 March 2016, one 55 carat stone has been recovered, which confirms the company's belief that the Baoulé pipe is a source of large diamonds that are renowned in the Aredor area of Guinea,” Smithson added. 

Once this month’s diamonds sale is out of the way, Stellar will then complete the necessary diamond grade and value modelling as part of the resource estimation exercise. The company’s resource target is, as previously indicated, some 3mln carats contained within the Baoulé pipe. 

When the grading and modelling has been completed it will allow the company to formulate the next development steps for the project.

“The company was able to confirm a difference in grade between the (volumetrically) larger eastern lobe (averaging 13.3cpht) and smaller western lobe (9.8cpht) lobes. Having said that, Stellar also noted that the difference could be due to differing processing efficiencies of the different kimberlite types,” noted broker Shore Capital.

Shares in Stellar were up 4.6% at 6.8p in a falling market in the first hour of trading.

WATCH: Stellar Diamonds “moving in the right direction” with licence, says chief PREVIOUS DIAMOND SALES: Stellar Diamonds poised for third Baoulé diamond sale ]]>
Mon, 13 Jun 2016 08:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/127039/stellar-diamonds-completes-baoul-sampling-early-127039.html
<![CDATA[Media files - Stellar Diamonds “moving in the right direction” with licence, says chief ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/5096/stellar-diamonds-moving-in-the-right-direction-with-licence-says-chief-5096.html Wed, 01 Jun 2016 12:17:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/5096/stellar-diamonds-moving-in-the-right-direction-with-licence-says-chief-5096.html <![CDATA[News - Stellar Diamonds sparkles on Tongo project licence news ]]> http://www.proactiveinvestors.co.uk/companies/news/126543/stellar-diamonds-sparkles-on-tongo-project-licence-news-126543.html Shares in Stellar Diamonds PLC (LON: STEL) were today sparkling as it reported progress on its bid for a mining licence for its Tongo project in Sierra Leone.

The group has been "verbally informed" that the Minerals Advisory Board (MAB) has approved its application, it said.

However, the licensing process remains subject to the National Minerals Agency (NMA), the licencing body of the Ministry of Mines, formally writing to the firm to inform it of the decision and drawing up a licence agreement, which will then be forwarded to the Minister of Mines for approval.

Then, the tax terms of the licence will need to be negotiated between Stellar and the government and then the agreement will need to be ratified through parliament.

Stellar shares added 11.54% to 7.25p.

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Tue, 31 May 2016 10:40:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/126543/stellar-diamonds-sparkles-on-tongo-project-licence-news-126543.html
<![CDATA[News - Stellar Diamonds PLC focused on advancing Tongo site ]]> http://www.proactiveinvestors.co.uk/companies/news/124126/stellar-diamonds-plc-focused-on-advancing-tongo-site-124126.html Stellar Diamonds PLC (LON:STEL) will be focused on moving the Tongo project in Sierra Leone into funding and development this year, it said, as it posted half year results.

It's been a busy period with the mining licence for the 1.45mln-carat Dyke-1 resource submitted last year.

The final stages of the application are now completed and the recommendation of the Minerals Advisory Board (MAB) to the Minister of Mines is now awaited.

A preliminary economic assessment has indicated an initial four-year open pit mining project would cost $24.8mln and produce around 118,000 carats of diamonds valued at $270/ct.

Elsewhere, trial mining has continued at the five-hectare Baoulé site in Guinea where the group is now 73% of the way through the 100,000 tonne bulk sample.

The firm expects the trial to be finished before the next rainy season (around July) and thereafter  to establish a maiden resource. In-house modelling of previous drilling has indicated a target of over 22mln tonnes, and at an average target grade of 12.7cpht, a diamond resource of around 3 million carats.

Three diamond sales have been completed in Antwerp which have realised US$1 million in revenues, the firm also noted.

For the period, the loss before tax was US$886,463 compared to  a loss of US$956,191 in the same period of 2014, while cash at hand increased to US$373,602 compared to US$65,649 last year.

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Tue, 29 Mar 2016 08:10:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/124126/stellar-diamonds-plc-focused-on-advancing-tongo-site-124126.html
<![CDATA[News - Stellar Diamonds poised for third Baoulé diamond sale ]]> http://www.proactiveinvestors.co.uk/companies/news/122556/stellar-diamonds-poised-for-third-baoul-diamond-sale-122556.html --ADDS SHARE RISE---

Stellar Diamonds (LON:STEL) told investors a third diamond sale of stones from trial mining at the Baoulé kimberlite project in Guinea will take place next month.

The miner has exported a parcel of 3,341 carats to diamond trading hub Antwerp in Belgium.

The sale is part of on-going trial mining evaluation of the Baoulé pipe.

So far around 8,830 carats have been recovered and two sales totaling 5,173 carats and generating revenues of over US$700,000 were completed in 2015.

The aim of the trial was to mine and process 100,000 tonnes of kimberlite, now over 70% complete and  yielding results in line with expectations, the group highlighted.

Based on the current grade realised and previous drilling, Stellar said it is still targeting a resource in the region of 3 million carats at Baoulé.

Shares added 5% on the day to stand at 10.5p.

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Tue, 16 Feb 2016 07:49:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/122556/stellar-diamonds-poised-for-third-baoul-diamond-sale-122556.html
<![CDATA[News - Stellar Diamonds rises on Sierra Leone licence update ]]> http://www.proactiveinvestors.co.uk/companies/news/121877/stellar-diamonds-rises-on-sierra-leone-licence-update-121877.html Stellar Diamonds’ (LON:STEL) mining licence application for the Tongo Dyke-1 diamond project in Sierra Leone is making good progress, it said today.

The National Minerals Agency has received the application and is considering it, while public disclosure meetings have been held over the environmental licence application.

Karl Smithson, chief executive, said while it is waiting for licence approval it is considering appropriate funding structures for the future commercial development.

Stellar is looking at a phased development of an open pit and subsequent underground mine. 

“This phased development model will not only create significant local employment opportunities but also support early cash flow generation and a long-term sustainable operation,” said Smithson.

A preliminary economic assessment indicated an initial 4 year open pit mining project would cost $24.8mln and produce around 118,000 carats of diamonds valued at $270/ct.

That would generate a pre-tax NPV of $53.2mln at a 10% discount rate and a pre-tax internal rate of return of 31%.

SP Angel said that Stellar Diamonds is at an important point in its development and efforts to engage with communities and other stakeholders should help build support for the project.

Shares rose 9% to 10.4p.

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Thu, 28 Jan 2016 11:51:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/121877/stellar-diamonds-rises-on-sierra-leone-licence-update-121877.html
<![CDATA[News - Stellar Diamonds finds big stone in Guinea ]]> http://www.proactiveinvestors.co.uk/companies/news/121694/stellar-diamonds-finds-big-stone-in-guinea-121694.html Stellar Diamonds (LON:STEL) unearthed its biggest diamond yet at a project in Guinea.

The company said it had found a 55-carat diamond at its 75% owned, five-hectare Baoulé kimberlite pipe in the west African country.

Stellar said the find confirmed the presence of large stones in the pipe and it was continuing to recover high-quality gems of up to 12 carats.

The gem - the largest discovered to date at Baoulé -  was an unusual stone as it had a low-quality coating but a seemingly better quality diamond inside, Stellar said.

It added that the quality and potential value of the stone was highly uncertain and it would carefully analyse it to find out how much it was worth before deciding on the sales process.

Chief executive Karl Smithson said: "We are extremely encouraged to have recovered this 55-carat stone as it confirms that the Baoulé pipe is a possible source of the large diamonds mined in alluvial deposits downstream of the Baoulé pipe for many years, several of which have been +100 carats in size.

"With approximately 63% of our trial mining and processing at Baoulé now complete, subject to the company having sufficient working capital, we're on track to finalise the trial mining and processing of 100,000 tonnes in the third quarter and look forward to providing further updates in due course."

However, the group said the average grade of the 8,043 carats recovered to date from Baoulé was slightly lower than previously reported. The stock fell 0.7p, or about 7.4%, to 8.8p after the update.

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Mon, 25 Jan 2016 09:00:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/121694/stellar-diamonds-finds-big-stone-in-guinea-121694.html
<![CDATA[News - Stellar Diamonds applies for large scale permit at Tongo ]]> http://www.proactiveinvestors.co.uk/companies/news/119771/stellar-diamonds-applies-for-large-scale-permit-at-tongo-119771.html Stellar Diamonds (LON:STEL) has submitted two key applications including one for a large scale mining licence for its Tongo project in Sierra Leone.

The mining permit application will now be processed by the National Minerals Agency and then forwarded to the Minerals Advisory Board, which will make a recommendation to the Minister of Mines.

Stellar has also submitted its final Environmental, Social and Health Impact Assessment (ESHIA) report.  Public meetings will be held in the New Year both at Tongo and in the capital Freetown, after which the Environmental Agency can issue a licence.

Karl Smithson, Stellar’s chief executive, said the two applications marked key milestones as it moves from explorer to miner.

“Notably, as far as I am aware, this is the first large scale mining licence of any kind to be applied for since the onset of the Ebola crisis,” he added.

“As such this therefore also marks an important milestone for the country of Sierra Leone which needs to attract new private sector investment.” 

A preliminary economic assessment in August indicated Tongo may produce almost one million carats of diamonds over 18 years, generating US$387mln in revenues.

The plan is work on surface for year in the first four years to bring in early cash flow.

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Fri, 27 Nov 2015 07:33:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/119771/stellar-diamonds-applies-for-large-scale-permit-at-tongo-119771.html
<![CDATA[News - Stellar Diamonds upbeat despite softer stone prices ]]> http://www.proactiveinvestors.co.uk/companies/news/119631/stellar-diamonds-upbeat-despite-softer-stone-prices-119631.html Stellar Diamonds (LON:STEL) has posted its first revenues from mining, as trial production got underway at Baoule in Guinea.

Income in the year to June was US$614,000, while losses reduced to £3.05mln (2014: £4.1mln) as admin costs halved.

In November, Stellar raised £1.26mln to advance its plans at Baoule and also at Tongo in Sierra Leone.

Karl Smithson, chief executive, said the mine plan and financial model for Tongo was very robust.

“The independent PEA outlines an 18-year life of mine at a modest capital requirement of US$24.8mln, which is expected to deliver robust revenues at a high margin."

A mining licence application and environmental impact assessment study would be submitted in near future, he said.

At Baoulé, processing had produced 6,400 carats so far with the most recent diamonds sale in May achieving an average value of US$156 per carat, he said.

“A number of diamonds have achieved high prices with a 10 carat fancy yellow stone fetching US$6,800 per carat, which indicates the high value potential of the diamonds contained in the Baoulé pipe.”

The target resource is 3.3mln carats based on historical drilling and the current trial mining.

Smithson noted the diamond market had weakened recently with prices 15% lower and set to go soften further, though cut backs by the majors should stabilise the position.

On a company level, however, he added this financial year should be transformational.

“Securing the mining licence and necessary funding to get Tongo into mine development and production, and continued positive results from trial mine evaluation of Baoulé should hopefully deliver the returns that shareholders deserve."

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Tue, 24 Nov 2015 09:14:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/119631/stellar-diamonds-upbeat-despite-softer-stone-prices-119631.html
<![CDATA[News - Stellar Diamonds to use bridge loan to restart at Baoulé ]]> http://www.proactiveinvestors.co.uk/companies/news/119094/stellar-diamonds-to-use-bridge-loan-to-restart-at-baoul-119094.html Stellar Diamonds (LON:STEL) has arranged a US$150,000 bridging loan to tide it over while it finalises a share and convertible loan issue.

Deutsche Balaton, which is backing the share and loan issue, is also providing the bridge finance that will be repaid when the £1.26mln financing completes.

Interest on the bridge loan will be 8% per annum and Stellar's chairman, Lord Daresbury, has issued a personal guarantee for its repayment. 

The money will help Stellar restart trial mining at Baoulé in Sierra Leone and to submit a mining licence application at Tongo without having to wait for approval at a general meeting.

The aim at Baoulé remains to process 100,000 tonnes of kimberlite to justify the next stages of project development.

Shares were 3% lower at 0.313p.

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Thu, 12 Nov 2015 12:11:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/119094/stellar-diamonds-to-use-bridge-loan-to-restart-at-baoul-119094.html
<![CDATA[Media files - Stellar Diamonds boss on Ebola fight and next steps for Tongo project ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4344/stellar-diamonds-boss-on-ebola-fight-and-next-steps-for-tongo-project-4344.html Mon, 09 Nov 2015 11:54:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/4344/stellar-diamonds-boss-on-ebola-fight-and-next-steps-for-tongo-project-4344.html <![CDATA[News - Stellar Diamonds hails Sierra Leone's great achievement ]]> http://www.proactiveinvestors.co.uk/companies/news/117225/stellar-diamonds-hails-sierra-leone-s-great-achievement-117225.html Sierra Leone becoming free of the Ebola virus is a huge achievement for the country and its people, Stellar Diamonds' (LON:STEL) boss, Karl Smithson, said.

The World Health Organisation said there had been no new cases of the Ebola virus reported in the country for 42 consecutive days.

Stellar, which is in the process of preparing the submission for its mining licence for the Tongo kimberlite diamond project in Sierra Leone, said it remains committed to supporting the recovery of Sierra Leone and the wider West African region.

Hailing the achievement of the country and its people in overcoming the horrific outbreak of the virus, chief executive Smithson said Stellar had also played its part in the fight against Ebola in Sierra Leone and Guinea and through various initiatives had contributed to the well-being and protection of its employees and local communities.

"The company will continue to support Sierra Leone and Guinea through ongoing project development.  The Tongo project is moving through the mining licence application stage and hopefully towards mine development, which will create both extensive employment and numerous community development opportunities that will significantly contribute towards the post-Ebola economic recovery in Sierra Leone,” Smithson said. 

“We note that whilst Ebola cases remain in Guinea these are dwindling and we hope that in the near future the virus can be fully eradicated from both Guinea and the West African region as a whole," he added.

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Mon, 09 Nov 2015 08:17:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/117225/stellar-diamonds-hails-sierra-leone-s-great-achievement-117225.html
<![CDATA[News - Stellar Diamonds set to bring in £1.26mln for working capital ]]> http://www.proactiveinvestors.co.uk/companies/news/116942/stellar-diamonds-set-to-bring-in-126mln-for-working-capital-116942.html Stellar Diamonds (LON:STEL) is to bring in around £1.26mln net via a convertible loan note agreement and subscription deal, which will be used for ongoing working capital, it said, as it unveiled a big reorganisation of its shares.

The AIM firm wants to complete its Tongo mining licence application in Sierra Leone and resume the trial mining of the  kimberlite pipe at  Baoulé in Guinea which has to date yielded over 6,400 carats.

The miner said it would issue new convertible notes to Deutsche Balaton AG to raise around £1.06mln. It will also issue  Deutsche Balaton warrants to subscribe for new Stellar shares worth around £1.06 million.

Conditionally, Stellar will also raise around £497,452 via a subscription through the issue of 7.6mln new subscription shares following the capital reorganisation.

That reorganisation will see every 50 shares consolidated into a single share of 50p each, which will then be sub-divided into one new share of 1 pence  and one deferred share of 49 pence.

The aim at Baoulé remains to process 100,000 tonnes of kimberlite to justify the next stages of project development. 

Diamond sales from trial mining evaluation have to date realised over US$700,000 with the latest sale in May 2015 achieving an average price of US$156 per carat.

Due to current weak rough diamond market conditions, however, Stellar expects the next diamond sale to be pushed back to the first quarter of 2016.

The rainy season in Guinea started in July this year which led to a hiatus in the trial mining.

It is expected that trial mining will recommence in this month (November), which the firm believes should result in an increase in diamond inventory for the next export and planned sale.

Shares in Stellar eased 20% to 0.30p.

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Mon, 02 Nov 2015 10:38:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/116942/stellar-diamonds-set-to-bring-in-126mln-for-working-capital-116942.html
<![CDATA[Media files - Stellar Diamonds boss on potential upside at Tongo project ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/4085/stellar-diamonds-boss-on-potential-upside-at-tongo-project-4085.html Mon, 24 Aug 2015 13:45:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/4085/stellar-diamonds-boss-on-potential-upside-at-tongo-project-4085.html <![CDATA[News - Stellar Diamonds study burnishes Sierra Leone project's credentials ]]> http://www.proactiveinvestors.co.uk/companies/news/110202/stellar-diamonds-study-burnishes-sierra-leone-project-s-credentials-110202.html An independent study of Stellar Diamonds’ (LON:STEL) Tongo kimberlite project in Sierra Leone support its potential to generate significant cash flow from a modest initial investment.

The eagerly-anticipated preliminary economic assessment (PEA) of the deposit, carried out by Paradigm Project Management (PPM), reckons there is the potential to excavate stones totalling 955,930 carats, generating US$387mln over 18 years.

The plan is work on surface for years one to four – a process that will a yield of 117,806 carats and bring early cash flow, according to Stellar’s consultants.

The capital investment required to get the project up and running is put at US$24.2mln, which is modest in an industry where development costs routinely run into hundreds of millions if not billions of dollars.

PPM has ascribed a net present value to Tongo of US$53.2mln and calculates it will internal rate of return of 31%.

Its economic model was developed using a grade of 120 carats per hundred tonnes and a diamond value of US$270 per carat.

The study also pointed to the “significant potential to increase mine life and revenues with resource open at depth”.

The company expects to formally submit its application for a mining licence in the “near future”.

Chief executive Karl Smithson told investors: "The Tongo PEA has delivered robust economics which support the development of an open pit and subsequent underground mine.

“Early cash flow is expected to be generated from the initial surface mining but the mine also represents a long-term and sustainable operation which has the potential to generate solid cash flows from the sale of its very high quality, high grade diamonds over many years.

“Stellar considers that the Tongo mine can be further improved and extended with the development of additional diamond resources from nearby high-grade kimberlites that we have previously identified and tested.”

The company is already generating revenues – from the trial mining of Baoulé kimberlite in Guinea.

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Mon, 24 Aug 2015 08:03:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/110202/stellar-diamonds-study-burnishes-sierra-leone-project-s-credentials-110202.html
<![CDATA[News - Stellar Diamonds agrees finance package with German group ]]> http://www.proactiveinvestors.co.uk/companies/news/109975/stellar-diamonds-agrees-finance-package-with-german-group-109975.html Stellar Diamonds (LON:STEL) has arranged a US$330,000 convertible loan note and a warrant for similar amount with German private equity firm Deutsche Balaton.

The Sierra Leone and Guinea diamond miner also intends to restructure its share capital through a 50 into one consolidation.

After the consolidation, and if it converts fully, Deutsche Balaton will hold a 4.4% stake in Stellar, which rises to 10.7% including the warrant.

Talks are also underway over increasing the size of the loan to provide financial headroom while trial mining and bulk sampling at Stellar’s two mines ramps up.

Karl Smithson, chief executive, said: "Deutsche Balaton share our vision for the development of a significant hard rock diamond mine from our portfolio of advanced projects in West Africa.

“In what remains a challenging market for the natural resource sector we welcome and value the support and credentials of Deutsche Balaton who we believe will be a long term strategic investor in the company.  

“The directors consider that the participation of Deutsche Balaton and the proposed share re-organisation are important developments in the transformation of Stellar from a junior explorer in to an established diamond producer."

Non-executive chairman Peter Daresbury lent Stellar US$45,000 to bolster its working capital position while the talks were being held with Deutsche Balaton.

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Fri, 14 Aug 2015 10:32:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/109975/stellar-diamonds-agrees-finance-package-with-german-group-109975.html
<![CDATA[News - Stellar Diamonds brings in US$505,000 from latest Baoulé diamond sale ]]> http://www.proactiveinvestors.co.uk/companies/news/107449/stellar-diamonds-brings-in-us505000-from-latest-baoul-diamond-sale-107449.html Stellar Diamonds (LON:STEL) said it was delighted with its latest diamond auction of stones from Baoule in Guinea, which brought in sales of US$505,000.

It was through the  online auction eDiamond platform and brings overall sales for 2015 of more than US$922,000 -  of which US$700,644 comes from trial mine evaluation of Baoulé.

Six lots totalling 48.12carats of more than 5 carat stones sold for US$3,510.17 per carat, the firm said.

Stellar's chief executive Karl Smithson said: "The presence of larger, high value stones and the stability in the rough diamond market has resulted in an average price of US$156 per carat for the latest Baoulé "run of mine" parcel."

He added: "Trial mining is on-going and further diamond sales are targeted for the coming year."

The firm is targeting from trial mining 15,000 carats for sale and valuation.

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Thu, 28 May 2015 07:24:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/107449/stellar-diamonds-brings-in-us505000-from-latest-baoul-diamond-sale-107449.html
<![CDATA[News - BIG PICTURE - Stellar Diamonds gleaming in Guinea ]]> http://www.proactiveinvestors.co.uk/companies/news/106811/big-picture-stellar-diamonds-gleaming-in-guinea-106811.html Twelve months ago Stellar Diamonds’ (LON:STEL) Baoulé mine was tipped to transform the company’s fortunes.

Back then, the firm was still building roads and lugging equipment to its 75% owned site, located in the heart of the Aredor diamond district in Guinea.

A year on, and after fast-tracking trial mining at the West African operation, Baoulé is generating substantial carats and cash flow for the business.

“We’ve become more of a development company than an exploration company,” Stellar’s chief executive Karl Smithson told Proactive. “That’s been a key change for us.”

To date, diamond production from initial trial mining at Baoule has recovered 34,958 diamonds, weighing 5,087 carats.

Sales of up to 4,439 carats will take place in Dubai and Antwerp this month and will include gem quality stones up to 12.6 carats in size.

It follows an earlier sale of 733 gem quality carats from Baoulé at an average value of US$266 per carat.

One diamond sold for more than US$25,000.

Stellar’s plan is to produce and sell a total of 15,000 carats from the site this year, raising between US$2-3mln.

All of which is being used to establish the overall diamond grade, value and presence of large stones in the kimberlite pipe.

“Essentially it’s a self-funded evaluation exercise,” explains Smithson. 

“We’ll be recycling all the funds back into the project. That way, Baoule becomes a lot more tangible from an investment perspective.”

Still, the firm would need to raise between US$50mln and US$100mln to move to full commercial-scale mining.

That requires a track record of production and a definitive resource study.

Hence why Stellar’s trial mining is an important early indicator of the mine’s future potential.

“In the long run, if we can prove Baoule’s economically viable, potentially, we could be mining 2mln tonnes of deposit annually,” said Smithson.

“At current grades, that could produce 300,000 carats with potential revenues of US$40-50mln each year.”

Clearly, that’s a major operational step up, but the early work could count for a lot. 

In a recent note, Austin McKelvie, analyst at Daniel Stewart, said Stellar is already establishing itself as a supplier of regular, high quality diamonds to the markets of the world from the mine in Guinea.

Another broker, Sanlam Securities, has a 'speculative buy' rating on Stellar’s shares, targeting 1.86p with current prices at 0.9p. 

Sanlam is just as keen on the firm’s second project in Tongo, which has an inferred resource of 1.45mln carats. 

Bulk sampling has been completed at the project in Sierra Leone, despite the Ebola crisis.

In April, Stellar lodged its application for a mining licence at the site as part of its new fast-track plan.

All of the data compiled so far on the deposit is being pulled together for a preliminary economic assessment. 

This will be used instead of a previously planned definitive feasibility study and will cut costs.

Smithson says moving the site to the mining licence application stage is a major milestone for the project.

Meanwhile, there is a clear will to support efforts to build the mine – which can offer a positive contribution to the post-Ebola social and economic reconstruction of the area.

Like most companies in the region, Stellar had to adjust its operations last year to address the threat of the Ebola outbreak.

Guinea has been the least affected of the West African countries, so work Baoulé hasn’t been impacted.

But in Tongo, one of the worst affected areas in Sierra Leone, Steller had to temporarily lock down its site.

Austin McKelvie, analyst at Daniel Stewart reckons the Ebola concerns have taken 50% off Stellar’s the share price since May last year. 

However, now reckons the shares are undervalued and is currently considering his target price.

Smithson, meanwhile, reckons it’s only a matter of time before Stellar’s value picks up.

“There’s no high-risk exploration left,” he said. 

“We’ve reached the development end of the curve and have a better understanding of grades, value, levels of production.

“As we progress, people will sit up and realise this is a different company altogether.”

  ]]>
Fri, 15 May 2015 10:35:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/106811/big-picture-stellar-diamonds-gleaming-in-guinea-106811.html
<![CDATA[News - UPDATE - Stellar Diamonds shares up as next diamond sale is pencilled in ]]> http://www.proactiveinvestors.co.uk/companies/news/68761/update-stellar-diamonds-shares-up-as-next-diamond-sale-is-pencilled-in-80077.html --adds chief executive comments, updates share price, includes brokers comment--

Stellar Diamonds (LON:STEL) will auction off a second batch of stones from trial mining at its Baoule site in Guinea. 

Sales of up to 4,439 carats will take place in Dubai and Antwerp this month and will include gem quality stones up to 12.6 carats in size.

Last month, Stellar sold 733 gem quality carats from Baoulé at an average value of US$266 per carat.

One 5.5 cpht diamond sold for more than US$25,000.

This second diamond sale is part of the company's anticipated regular sales process from the trial mining of Baoulé.

The goods will be available to view in the offices of eDiamond in Dubai from the 10 to 13 May and in Antwerp from the 18 to 25 May with the auction expected to close at the end of this month.

Stellar’s chief executive Karl Smithson said the 4,439 carats are a mixture of new and withheld goods.

“We’re selling almost 3000 carats of new product. The remainder of the diamonds were withheld and not sold previously due to weak market conditions at the time.”

Overall, Stellar plans to produce a total of 15,000 carats from Baoulé in order to establish the diamond grade, value and presence of large diamonds in the kimberlite pipe.

Latest mining has seen diamonds of between 12.6 carat and 10.0 carats, the company said. 

So far a total of 5,087 carats has been unearthed at the mine at an average grade of 13.5 cpht.

“From the mine in Guinea, the second sale boosts the Baoulé brand within the industry, with Stellar Diamonds establishing itself as a supplier of regular, high quality diamonds to the markets of the world,” said Austin McKelvie, analyst at broker Daniel Stewart.

Shares were 15% higher to 0.8p. ]]>
Thu, 07 May 2015 11:34:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/68761/update-stellar-diamonds-shares-up-as-next-diamond-sale-is-pencilled-in-80077.html
<![CDATA[News - Stellar Diamonds pleased with trial mining progress at Baoule ]]> http://www.proactiveinvestors.co.uk/companies/news/68178/stellar-diamonds-pleased-with-trial-mining-progress-at-baoule-79437.html Stellar Diamonds (LON:STEL) has recovered more large, high quality stones from its trial mining operation at Baoule in Guinea.

Latest mining has seen diamonds of between 12.6 carat and 10.0 carats, the company said. So far a total of 5,087 carats has been unearthed at the mine at an average grade of 13.5 cpht.

The breakdown was 382 diamonds of more than  1 carat, 115 diamonds over 2 carats, and 21 diamonds greater than  5 carats.

Last month, Stellar sold 733 gem quality carats from Baoulé at an average value of $266 per carat as part of a larger sale. One 5.5 cpht diamond sold for more than US$25,000.

Karl Smithson, chief executive, said: "Good progress continues to be made from trial mining at Baoulé.  

“Our objective is to produce 15,000 carats from this exercise to enable us to determine the grade, value and presence of large stones in the pipe, with a view to using this information to consider a decision to advance Baoulé to commercial scale mining.“

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Mon, 20 Apr 2015 08:33:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/68178/stellar-diamonds-pleased-with-trial-mining-progress-at-baoule-79437.html
<![CDATA[News - UPDATE - Stellar Diamonds lodges application as it fleshes out Tongo fast track plan ]]> http://www.proactiveinvestors.co.uk/companies/news/67697/update-stellar-diamonds-lodges-application-as-it-fleshes-out-tongo-fast-track-plan-78914.html --- ADDS SHARE PRICE AND BROKER COMMENT---

Stellar Diamonds (LON:STEL) has lodged its application for a mining licence at the Tongo Dyke-1 kimberlite project in eastern Sierra Leone as part of its new fast-track plan.

All of the data compiled so far on the 1.45mln carat deposit will also be pulled together for a preliminary economic assessment. This will be instead of a previously planned definitive feasibility study and will cut costs.

Tongo has a net present value (NPV) on current estimates on US$75mln assuming an average 120cpht [carats per hundred tons] and US$270/ct [per carat] price.

Stellar expects to increase that NPV value by targeting higher grade stones at an average 165cpht, with an initial target of 120,000 carats production through surface mining during the first three years.

It will cost US$20mln to bring the mine into production, to be funded by debt, with a target over the total life of mine of one million carats over 16 years.

Karl Smithson, chief executive, said: "Moving Tongo to the mining licence application stage is a major milestone for the project.

 “Simultaneous to this we intend to establish a suitable financing structure to access debt funding for the majority of the US$20mln of capital expenditure, which is estimated to be required to bring the project into production.

"We are delighted at the positive response received from various stakeholders within Sierra Leone.

“There is a clear will to support our efforts to build the next diamond mine in Sierra Leone, which can offer a significant and positive contribution to the post-Ebola social and economic reconstruction."

Sanlam keeps its 'speculative buy' unchanged on the shares, targeting 1.86p.

"We believe that the Tongo and Baoule projects merit development (Baoule dependent on stone value) but are concerned about recommending a stock that needs equity in the current soft funding environment (for junior miners)," said analyst Charlie Long.

He added that Stellar's debt approach  would minimse the dilution if successful, so long as the cost is not too high.

"Presumably a project level investor is also a possibility," added the analyst.

Stellar shares were unchanged at 0.85p.

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Wed, 01 Apr 2015 12:44:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/67697/update-stellar-diamonds-lodges-application-as-it-fleshes-out-tongo-fast-track-plan-78914.html
<![CDATA[News - UPDATE - Stellar Diamonds to switch to fast-track Tongo development ]]> http://www.proactiveinvestors.co.uk/companies/news/67536/update-stellar-diamonds-to-switch-to-fast-track-tongo-development-78744.html -- adds company comment --

Stellar Diamonds (LON:STEL) plans to raise US$20mln in additional funding to fast-track its Tongo mine towards commercial production. 

The funds are expected to come from non-dilutive project debt structures and would support a licence application and new mine plan that uses existing data.

Philip Knowles, chief financial officer, said the focus now is combining all the data into a pre-feasibility type report, which would be sufficiently detailed to use to raise money.

“We feel we’ve got enough information to go to private equity firms and get a debt and equity package,” he told Proactive.

“This saves the 6-9 months of definitive feasibility study (DFS) work and the additional costs to get to that stage.”

Tongo has an inferred resource of 1.45 mln carats. 

Bulk sampling has been completed at the project, which is in Sierra Leone, despite the Ebola crisis.

A new study has also identified a technique to allow Stellar to mine from surface for three years while underground mine development is completed. 

In a statement today, chief executive Karl Smithson said the new method would boost the project’s economics.

“We intend to conduct an updated preliminary economic assessment, which should justify the decision to apply for a mine lease for the project during 2015”, he added.

The licence application will include an environmental impact assessment and the updating and combining of existing technical and mining reports, he added.

The company recently sold its first diamonds from the Baoule project in Guinea following the start there of trial mining.

Processing to date has yielded over 4,100 carats at a grade of over 13cpht, Smithson said.  

“We expect to continue the trial mining with an objective of at least 100,000 tonnes being processed in aggregate to establish the grade and value of the pipe with confidence, but importantly to recover some large, high value diamonds.” 

Stellar posted a loss of US$0.93mln (US$1.55mln) in the half year to December 2014.

Shares were little changed at 0.899p.

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Fri, 27 Mar 2015 10:52:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/67536/update-stellar-diamonds-to-switch-to-fast-track-tongo-development-78744.html
<![CDATA[News - UPDATE - Stellar Diamonds happy with sale of first Baoule diamonds ]]> http://www.proactiveinvestors.co.uk/companies/news/67381/update-stellar-diamonds-happy-with-sale-of-first-baoule-diamonds-78580.html -- adds broker comment--

Stellar Diamonds (LON:STEL) generated revenues of US$417,000 from a diamonds sale in Antwerp that included the first stones from Baoulé in Guinea.

The group sold a total of 4,414 carats, with a further 1,617 carats held back to be re-sold at a later date. Baoule diamonds accounted for 39% of the total put up for sale.

Overall, Stellar said it was pleased with the result in a challenging market for rough diamonds, adding that one five carat high quality diamond was sold for more than US$25,000.  

The next sale is planned for May.

Trial mining only recently started at the Baoulé kimberlite, while Stellar is working through a definitive feasibility study at the Tongo Dyke-1 resource in Sierra Leone. 

Broker Sanlam said the results were difficult to interpret as it was not clear whether the diamonds sold were exclusively from Baoule or from Tongo or another of Stellar’s properties. 

The quality of the 1,617 carats not sold was also unclear. If they are mostly high quality stones, the average carat value could rise very significantly especially as the Baoule conceptual model is based on a $200/ct value.

Karl Smithson, Stellar’s chief executive, said he hopes for more large diamonds to produced from Baoule.

It is in an area renowned for 100ct-200ct sized alluvial discoveries, but also where no one has yet tested the kimberlite pipes.

As bulk sampling develops and the company gains a better understanding of the pipes he is hopeful of finding more large stones.

The next diamond sale will be of 4,000 carats, he added.

 

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Tue, 24 Mar 2015 15:51:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/67381/update-stellar-diamonds-happy-with-sale-of-first-baoule-diamonds-78580.html
<![CDATA[Media files - Stellar Diamonds chief pleased with maiden sale ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/3155/stellar-diamonds-chief-pleased-with-maiden-sale-3608.html Tue, 24 Mar 2015 13:42:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/3155/stellar-diamonds-chief-pleased-with-maiden-sale-3608.html <![CDATA[News - Stellar Diamonds kicks off auction in Antwerp; sells first stones from Baoulé mine ]]> http://www.proactiveinvestors.co.uk/companies/news/66628/stellar-diamonds-kicks-off-auction-in-antwerp-sells-first-stones-from-baoul-mine-77746.html Stellar Diamonds (LON:STEL) has started to sell its first precious stones from its Baoulé mine in Guinea.

A diamond tender of 6,031 carats began in Antwerp this morning, the centre of the world diamond market.

In total, the auction consists of over 2,200 carats from Baoulé and 3,800 carats of inventory taken from other projects.

Viewing is expected to run for two weeks, after which the firm will consider final bids.

Stellar’s Tongo mine, in Sierra Leone, is currently going through the feasibility stage.

Together with Baoulé and resources at its other projects, the company wants to build a resource base of 7.5mln carats, which it estimates would have an in-situ value of US$1bn.

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Fri, 27 Feb 2015 07:58:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/66628/stellar-diamonds-kicks-off-auction-in-antwerp-sells-first-stones-from-baoul-mine-77746.html
<![CDATA[News - Stellar Diamonds to sell first diamonds from Baoule ]]> http://www.proactiveinvestors.co.uk/companies/news/66314/stellar-diamonds-to-sell-first-diamonds-from-baoule-77399.html The first diamond exports from its Baoulé mine have now been prepared and are ready for sale, Stellar Diamonds (LON:STEL) said today.

Trial mining is currently underway at the mine in Guinea and this first batch of approximately 2,350 carats will now be sold in Antwerp alongside approximately 3,700 carats from its other projects.

When sold, it will represent the first revenues from the planned cycle of exports during 2015 from Baoulé.

Though rough diamond prices have been soft since the final quarter of 2014, some producers have indicated that prices may now be stabilising, the company said.

In its annual statement, Lord Daresbury added the group expected cash flows a regular basis from Baoule throughout 2015.

Tongo, in Sierra Leone, is going through the feasibility stage and together with Baoulé and resources at its other projects, Stellar want to build a resource base of 7.5 mln carats, which it estimates would have an in-situ value of US$1bn currently.

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Wed, 18 Feb 2015 08:07:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/66314/stellar-diamonds-to-sell-first-diamonds-from-baoule-77399.html
<![CDATA[Media files - Stellar Diamonds chief on latest fundraise ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/2993/stellar-diamonds-chief-on-latest-fundraise-3429.html Fri, 23 Jan 2015 10:25:00 +0000 http://www.proactiveinvestors.co.uk/companies/stocktube/2993/stellar-diamonds-chief-on-latest-fundraise-3429.html <![CDATA[News - Stellar Diamonds receives strong support from UBS Deutschland in share issue ]]> http://www.proactiveinvestors.co.uk/companies/news/65522/stellar-diamonds-receives-strong-support-from-ubs-deutschland-in-share-issue-76502.html Stellar Diamonds (LON:STEL) has raised in the region of £1mln through a placing of shares at 1.16p each.

The diamond mining and exploration company focused on West Africa said the funds from the share issue will mostly be used for the current trial mining at the company’s Baoulé kimberlite project in Guinea and for working capital purposes.

After issuing 88.36mln shares, the total number of Stellar shares in issue now totals 811.93mln.

"With revenues from our first diamond sale of a 5,900 carat parcel expected in the near-term this placement strengthens the company's balance sheet at a time when capital markets in the junior sector are notoriously weak,” said Stellar’s chief executive, Karl Smithson.

“It also underscores the support of our existing shareholders, most notably UBS Deutschland, and our directors, many of who are participating. We are also pleased to welcome new shareholders to the company at this exciting juncture in our growth and development,” Smithson said.

UBS Deutschland is the company’s second largest shareholder, and took 62.4mln of the newly issued shares, lifting its stake to 15.58%.

Lord Peter Daresbury, Steven Poulton, Luis da Silva and Markus Elsasser were the directors who subscribed for shares.

Taking the opportunity to give a quick operational update, Smithson said the company expects, based on the current processing capacity and grades, to continue to yield approximately 2,000 carats per month, and regular diamond exports and sales are expected during 2015.

"I look forward to providing further updates on production at Baoulé and our maiden diamond sale," Smithson said.

Stellar shares currently trade at 1.33p, up 8.2% on the day.

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Thu, 22 Jan 2015 09:48:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/65522/stellar-diamonds-receives-strong-support-from-ubs-deutschland-in-share-issue-76502.html
<![CDATA[News - UPDATE - Stellar Diamonds says Guinea trial mining on track; opts for larger Antwerp auction ]]> http://www.proactiveinvestors.co.uk/companies/news/65016/update-stellar-diamonds-says-guinea-trial-mining-on-track-opts-for-larger-antwerp-auction-75929.html ---ADDS BROKER COMMENTS AND SHARE PRICE---

Stellar Diamonds (LON:STEL) said it is planning a far larger auction of stones than was first anticipated as it updated on progress at its Baoulé kimberlite pipe in Guinea.

In total it will sell 5,900 carats, which consists of 2,200 carats from Baoulé and 3,700 carats of inventory taken from other projects.

Stellar said it decided to opt for a larger auction in Antwerp, centre of the world diamond market, to maximise revenues.

"The planned sale will be scheduled for later in January, when buying activity resumes in Antwerp after the end of year break,” said chief executive Karl Smithson.

In the same announcement investors were told 2,145 carats have been unearthed from the five hectare Baoulé pipe at a grade of 15 carats per hundred tonnes. High quality gems continue to be recovered, including stones of 8.5 and 6.6 carats in size.

The processing plant is running at its planned 50 tonnes of ore per hour optimum rate, meaning monthly production should be in the order of 2,000 carats, assuming the current grade is maintained.

"We are pleased with the on-going progress of the trial mining at Baoulé,” CEO Smithson added.

“The regular occurrence of larger gem quality stones is highly encouraging, as is maintaining our target plant processing capacity and run of mine grade, in order to achieve our objective of processing 2,000 carats per month during 2015.”

The City broker Sanlam has been heartened by progress to date. It pointed out the frequency of large stones suggests the kimberlite is host to a “good percentage of gem quality stones”.

It therefore reckons a price of US$200 a carat is achievable, which stacks up to be US$30 a tonne of ore mined, or double the mining and processing cost.

“Based on Stellar’s 22mln-tonne resource estimate, which is likely to be quite accurate, Baoule represents a good sized and decent margin mining project,” said Sanlam analyst Charlie Long.

At 11.15am, the shares were marking time at 1.2p each.

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Tue, 06 Jan 2015 11:16:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/65016/update-stellar-diamonds-says-guinea-trial-mining-on-track-opts-for-larger-antwerp-auction-75929.html
<![CDATA[News - Stellar Diamonds arranges bridging loan with Yorkville ]]> http://www.proactiveinvestors.co.uk/companies/news/64385/stellar-diamonds-arranges-bridging-loan-with-yorkville-75216.html Stellar Diamonds (LON:STEL) has arranged a bridging loan facility for up to US$2mln with financier Yorkville.

The facility, which will be available for three years, will provide two initial loan tranches of US$250,000 to tide Stellar over until regular diamond exports and sales from the Baoulé project get underway.

In conjunction with the loan facility, Stellar has also entered into a £1mln standby equity distribution facility (SEDA) and warrant agreement with Yorkville.

Karl Smithson, Stellar’s chief executive, said: "The company is at an inflection point with the first sale of diamonds from our Baoulé Project expected this month and further regular exports and sales expected to occur every 2 months thereafter. 

“This loan facility provides a source of bridge finance to support the working capital and operating requirements of the company whilst we begin to generate regular cash flows." 

Smithson added the company does not currently anticipate using the SEDA facility. 


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Tue, 09 Dec 2014 15:55:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/64385/stellar-diamonds-arranges-bridging-loan-with-yorkville-75216.html
<![CDATA[News - Stellar Diamonds exports first batch of stones from Guinea ]]> http://www.proactiveinvestors.co.uk/companies/news/64211/stellar-diamonds-exports-first-batch-of-stones-from-guinea-75028.html Stellar Diamonds (LON:STEL) passed a major milestone on its route to generating cash after revealing it had exported its first package of stones from its Baoulé kimberlite pipe in Guinea.

A total of 941 carats will go on sale in the world diamond capital Antwerp – a number of the batch are gem quality stones ranging from 9.2 carats down to 4.3. So far, 85 diamonds mined have been over one carat.

In total the company has produced 1,206 carats, giving an average grade of 15 carats per hundred tonnes.

Stellar said its trial mining plant is now running at 55 tonnes of wet kimberlite per hour, which at the current average grade should result in 2,000 carats being produced a month. It expects to run a sale every two months.

"We are particularly pleased with the regular occurrence of gem quality stones of up to nine carats in size from the limited processing to date,” Stellar chief executive Karl Smithson told investors.

“As this region of Guinea is renowned for its large diamonds of over 100 and 200 carats in size mined from alluvial mining, we are hopeful that we may recover yet larger, high value diamonds as we continue to process higher volumes of kimberlite over the coming months.

“I look forward to updating shareholders as we progress our strategy of delivering value from our key assets at both Baoulé and Tongo."

The news follows very swiftly on the heels of an update on Stellar’s other project, Tongo in Sierra Leone, which looks likely to provide the opportunity of yet more early cash flow.

Starting with surface mining it hopes to generate US$36mln in revenues in just three years from Tong before then moving on to the more capital intensive underground phase.

An independent study re-assessed the potential returns of the project and calculated its net present value to be US$75mln – 42% up on the previous estimate. The internal rate of return was 55%.

Factoring in the recently-updated grade of 165 carats per hundred tonnes, the net present value of project would rise to US$146mln.

The report assumed 1mln carats will be mined over the 16-year life of the mine at an estimated cost of US$16mln to put into production.

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Thu, 04 Dec 2014 07:31:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/64211/stellar-diamonds-exports-first-batch-of-stones-from-guinea-75028.html
<![CDATA[News - UPDATE - Stellar Diamonds signposts route to early production in Sierra Leone ]]> http://www.proactiveinvestors.co.uk/companies/news/64164/update-stellar-diamonds-signposts-route-to-early-production-in-sierra-leone-74974.html --adds broker comment--

Stellar Diamonds (LON:STEL) has outlined a route to early cash flow from its Tongo Project in Sierra Leone as well as revealing significantly enhanced economics for the operation.

By starting with surface mining it hopes to generate US$36mln in revenues in just three years before then moving on to the more capital intensive underground phase.

Tongo’s planned development mirrors the approach adopted at the firm’s other major property, Baoulé in Guinea.

Here, bulk sampling work continues to unearth gem quality stones that can be sold to fund the business.

Returning to Tongo, an independent study re-assessed the potential returns of the project and calculated its net present value to be US$75mln – 42% up on the previous estimate. The internal rate of return was 55%.

The model assumed Stellar would net US$270 per carat, while the grade would be 120 carats per hundred tonnes.

Factoring in the recently-updated grade of 165 carats per hundred tonnes, the net present value of project would rise to US$146mln.

The report assumed 1mln carats will be mined over the 16-year life of the mine at an estimated cost of US$16mln to put into production.

Chief executive Karl Smithson told investors: "Having recently commenced trial mining at our Baoulé project in Guinea to generate cash-flow before the end of 2014, we are delighted that we believe we have also found a route to early cash flow for Tongo and believe we are demonstrating our ability to deliver optimum value from our projects.

“We look forward to updating shareholders on our results from Baoulé and on the next development steps of the Tongo project."

Broker Cantor Fitzgerald raised its share price target to 2.25p from 1.8p on the back of the new Tongo numbers.

One of the problems with the original Tongo scoping study, the broker adds, was the long wait for cash flow, so a small starter pit that will produce 120,000 carats in year 1-3 is a very positive development.

The Baoule operation is only included in its target at US$5m, but Cantor said its value should increase very significantly once more grade and value data has been produced by the current bulk sampling operation.

Shares rose 2% to 1.2p.

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Wed, 03 Dec 2014 11:40:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/64164/update-stellar-diamonds-signposts-route-to-early-production-in-sierra-leone-74974.html
<![CDATA[News - Oracle Coalfields, Mandalay Resources, Caledonia Mining and Stellar Dimaonds at next forum ]]> http://www.proactiveinvestors.co.uk/companies/news/64058/oracle-coalfields-mandalay-resources-caledonia-mining-and-stellar-dimaonds-at-next-forum-74850.html Next Thursday we would be delighted if you could join us in Mayfair to hear from four fantastic resource companies -  Mandalay Resources (TSE:MND) Caledonia Mining (LON:CMCL) Stellar Diamonds (LON:STEL) Oracle Coal (LON:ORCP)

Each oversees very different projects but all four are united by their exciting and significant progress. 

To ensure you don't miss out on the event on December 4, secure your place HERE.

Oracle Coal has taken huge strides forward at its landmark Thar coal and power development in Pakistan. The plan remains to build a 4.2 million tonnes per year mine coupled with a 600 megawatt power plant at a combined cost of US$1.3 billion. 

A framework agreement with SEPCO, one of China’s leading contractors, and backed by Sinosure, will cover construction and 85% of the build costs. However, Oracle needs to add the final piece of financing to get the ball rolling. With the country so short of power and growing rapidly, Oracle has the full support of the Pakistan government. Chief executive Shahrukh Khan will join us to update on progress.

Mandalay Resources has been a strong performer this year as its status as one of the few dividend-paying junior miners has marked it out from rivals. Success has been built on the hugely successful Costerfield and Cerro Bayo gold and silver mines. Both were bought cheap and developed into great opportunities - a trick Mandalay hopes to repeat with its recent Challacollo and Elgin acquisitions. 

Development plans are already being rolled into place for these two and chief executive Brad Mills will join us to explain more about the potential here and also for further growth at the two flagship operations.

Caledonia Mining aims to build on its recent success by doubling production at the Zimbabwe-based Blanket gold mine. Expansion will cost US$70mln. A recent review indicated other opportunities outside Zimbabwe did not offer anywhere near the potential of digging deeper at the historic site. Blanket has already been through the indigenisation process and is forecast to produce 40,000 ounces of gold this year. Output will rise to around 80,000 ounces following the additional investment at a very low cost per ounce compared to other similar-sized gold mines. 

All of the capital expenditure will be funded from internal cash flows while Caledonia will keep paying a dividend in 2015. Chief financial officer Mark Learmonth will join us to explain the case for expansion.

Stellar Diamonds has exceeded all expectations from trial mining at the Baoulé kimberlite pipe in Guinea. First ore processed yielded 196 carats in total, or 17 carats per hundred tonnes and well above the minimum expected grade of 13 carats per hundred tonnes. 

The miner also pulled out a number of large stones including two meaty-sized 5.5 and 5.1 carat diamonds. Overall, half of the diamonds found were of gem quality. The first export of stones is expected to take place next month and with an estimated diamond value of around US$200 a carat, brokers are tipping Baoulé to become a significant cash flow generator for Stellar. Chief executive Karl Smithson will talk us through what is happening at Baoule and also update on progress towards a bankable feasibility study at Tongo in Sierra Leone.

The evening will end with a complimentary bar and an assortment of hot & cold canapes, giving you the opportunity to speak with the directors and other investors.

Please join us at 5:45pm to allow for a prompt 6pm start. Each company has around 30 minutes to give a short presentation and for Q&A. This will be followed by the 'Champagne Raffle' where four guests will win a bottle each. The evening will end with a drinks reception with canapés.

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Fri, 28 Nov 2014 17:30:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/64058/oracle-coalfields-mandalay-resources-caledonia-mining-and-stellar-dimaonds-at-next-forum-74850.html
<![CDATA[News - Stellar Diamonds unveils significant diamond upgrade for Tongo project ]]> http://www.proactiveinvestors.co.uk/companies/news/64042/stellar-diamonds-unveils-significant-diamond-upgrade-for-tongo-project-74834.html ---ADDS BROKER COMMENT---

Stellar Diamonds (LON:STEL) has unveiled a significant increase in the resource and the diamond grade of its Tongo kimberlite Dyke-1 project in eastern Sierra Leone.

The JORC compliant inferred resource rises 35% to 1.477mln carats, while bulk sampling has led to a 37% increase in the grade to 165 carats per hundred tonnes.

Meanwhile, the diamond price model now puts the value of stones unearthed at between US$145 and US$270 per carat and values the resource at up to US$290mln.

Broker Daniel Stewart said: “It is unquestionable that the increase in contained carats will have a positive impact upon Tongo’s economics.”

Chief executive Karl Smithson pointed out that further potential exists as the project also encompasses three parallel kimberlite dykes which form part of the Tongo dyke swarm. 

This includes the one-kilometre long Dyke-4, which has previously been bulk sampled and returned a diamond grade estimate of 110 carats per hundred tonnes and an estimated average diamond value of US$140 per carat.

Last month Stellar said trial mining of its Baoulé kimberlite pipe in Guinea had exceeded hopes with a number of large stones uncovered.

The first ore processed yielded 196 carats in total, or 17 carats per hundred tonnes – which was well ahead of the minimum expected grade of 13 carats per hundred tonnes.

Within that Stellar unearthed octahedrons of 5.5 carats and 5.1 carats alongside stones of 3.1, 1.9, 1.3 and 1.2 carats. Overall, half of the diamonds found were of gem quality.

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Fri, 28 Nov 2014 13:20:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/64042/stellar-diamonds-unveils-significant-diamond-upgrade-for-tongo-project-74834.html
<![CDATA[News - Stellar Diamonds focused on cashflow in 2015 ]]> http://www.proactiveinvestors.co.uk/companies/news/63593/stellar-diamonds-focused-on-cashflow-in-2015-74306.html Stellar Diamonds (LON:STEL) said its focus on trial mining at the Baoulé project in Guinea and delivering a feasibility study at Tongo in Sierra Leon will “continue to generate value for shareholders”. 

The work to date has been promising – at Baoulé in particular progress has been encouraging.

The first ore processed yielded 196 carats in total, or 17 carats per hundred tonnes, which was well ahead of the minimum expected grade of 13 carats per hundred tonnes. The plan is to generate “regular cash flow from” Baoulé, Stellar said. 

The update came alongside full-year results, which revealed the group made a reduced loss of US$4.1mln in the six months to June 30. Having raised US$6.5mln, Stellar is on a reasonably sound financial footing.

Chief executive Karl Smithson told investors: "Stellar has continued to deliver on its milestones this financial year.  

“Since entering a joint venture on the Baoulé kimberlite pipe project in Guinea we have quickly established a trial mining operation that has delivered its first diamonds with higher grades than expected.  

“The presence of larger gems of around five carats in size from early production runs has been particularly encouraging.  

“Our target is to increase production towards 2,000 carats per month and to establish a regular cycle of diamond exports and sales during 2015.”


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Thu, 13 Nov 2014 09:12:00 +0000 http://www.proactiveinvestors.co.uk/companies/news/63593/stellar-diamonds-focused-on-cashflow-in-2015-74306.html
<![CDATA[News - UPDATE - Stellar Diamonds' Guinea project yields several large stones as grade exceeds expectations ]]> http://www.proactiveinvestors.co.uk/companies/news/62869/update-stellar-diamonds-guinea-project-yields-several-large-stones-as-grade-exceeds-expectations-73454.html ---ADDS CEO AND BROKER COMMENT---

Stellar Diamonds (LON:STEL) shares rose 11% after it said trial mining of its Baoulé kimberlite pipe in Guinea had exceeded hopes with a number of large stones uncovered.

The first ore processed yielded 196 carats in total, or 17 carats per hundred tonnes – which was well ahead of the minimum expected grade of 13 carats per hundred tonnes.

Within that Stellar unearthed octahedrons of 5.5 carats and 5.1 carats alongside stones of 3.1, 1.9, 1.3 and 1.2 carats. Overall, half of the diamonds found were of gem quality.

The first export of stones is expected to take place next month, and eventually the project is expected to pay for itself. “As we build up production so the project becomes self-sustaining,” chief executive Karl Smithson told Proactive Investors.

“We are probably going to be look at two, three exports in before the project is doing that.”

The objective is to mine 100,000 tonnes to establish a diamond grade and a benchmark value for the stones. The group is currently expects to receive around US$200 a carat.

Smithson said there was some fine tuning to be done with the plant used to process the diamond-bearing kimberlite ore, but overall he is happy with progress.

“We have now ramped up to 50 tonnes per hour,” he said. 

“The capacity is 100 tonnes. But if we can get up to 60, 70 tonnes we will be very, very happy. It is about fine tuning and everyone doing their job.”

The shares, up 42% in the year to date, rose 11% to 1.41p. Broker Daniel Stewart reckons the stock has much further to go, setting a price target of 5p.

“With an estimated diamond value of around US$200 a carat, Baoulé has the potential to become a significant cash flow generator for Stellar,” analyst Austin McKelvie said in note to clients.

Separately, Stellar said it had implemented restrictions on staff travel and a total ban on visits to the epicentres of the Ebola virus in Guinea.

“The company continues to monitor the situation very closely to ensure the continued well-being of all employees and that of the local communities,” it added.


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Tue, 21 Oct 2014 15:52:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/62869/update-stellar-diamonds-guinea-project-yields-several-large-stones-as-grade-exceeds-expectations-73454.html
<![CDATA[Media files - Stellar Diamonds CEO: Encouraging start to trial mining ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/2787/stellar-diamonds-ceo-encouraging-start-to-trial-mining-3184.html Tue, 21 Oct 2014 15:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/2787/stellar-diamonds-ceo-encouraging-start-to-trial-mining-3184.html <![CDATA[News - Stellar Diamonds invests in earthmoving machines with placing proceeds ]]> http://www.proactiveinvestors.co.uk/companies/news/62753/stellar-diamonds-invests-in-earthmoving-machines-with-placing-proceeds-73316.html Stellar Diamonds (LON:STEL) has raised just shy of £400,000 to spend on earth moving equipment at its Tongo and Baoulé projects in Sierra Leone and Guinea.

Baoulé will receive most of the equipment, Stellar added, to boost its mining and production rate as part of the large scale bulk sampling, or trial mining, planned over the next twelve months.

First diamonds were recently recovered from Baoulé as part of the processing plant commissioning process and Stellar now wants to increase mining and processing capacity.

The machines are being bought for €0.5mln from Stellar's major shareholder, Foradex Invest SRL.

To raise the money, Stellar issued 25.56mln shares at 1.55p with a warrant attached.

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Thu, 16 Oct 2014 08:12:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/62753/stellar-diamonds-invests-in-earthmoving-machines-with-placing-proceeds-73316.html
<![CDATA[News - Stellar Diamonds passes key milestone as unearths first diamonds from Guinea mine ]]> http://www.proactiveinvestors.co.uk/companies/news/62544/stellar-diamonds-passes-key-milestone-as-unearths-first-diamonds-from-guinea-mine-73080.html Stellar Diamonds (LON:STEL) said it passed a key milestone as it recovered the first diamonds from Baoulé kimberlite pipe in Guinea.

Having commissioned the trial mining plant on schedule last month, a limited amount of ore has so far been processed.

Even so it has yielded over 50 carats, including stones 3.76 carats and 1.37 carats.

The objective is to mine 100,000 tonnes to establish a diamond grade and a benchmark value for the stones.

Chief executive Karl Smithson said: "I am delighted to be on site to witness the first recovery of diamonds from our Baoulé pipe which is a key milestone for Stellar.

“Our team has done an excellent job to get the project up and running in a short space of time and under challenging conditions during the rainy season.

“Our next objective is to optimise the commissioning of the plant before increasing the volume throughput of kimberlite ore, which could take a few weeks further.

“Whilst this large scale bulk sampling, or trial mining, is expected to establish the diamond grade and value of the kimberlite pipe to a high degree of confidence, it is also expected to provide cash flow to the company over the next twelve months."

In-house modelling of previous drilling over the pipe has identified a target of over 22mln tonnes to a depth of 300m, which, at a grade of 13 carats per hundred tonnes, would yield around 3mln carats.

This increases to 6.5 million carats using an average microdiamond grade of 30 carats per hundred tonnes.

“However, investors should note that this is not an independent resource estimate or in accordance with the JORC Code,” Stellar cautioned.

Sticking with the historic data, the firm said a 509-carat parcel sold in 2000, which did not contain any large stones, was sold for US$157 per carat.

Stellar said there “may be considerable upside” on this diamond price and the same parcel could realistically be expected to achieve prices in excess of US$200 per carat in the current market.

In the same announcement, the company said it had reached the investment milestones that cede it a 75% interest in the licence containing the Baoulé.

Separately, Stellar said it continued to monitor conditions in the area with regard to Ebola. However it pointed out there has not been a case in the vicinity.

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Thu, 09 Oct 2014 07:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/62544/stellar-diamonds-passes-key-milestone-as-unearths-first-diamonds-from-guinea-mine-73080.html
<![CDATA[News - Stellar Diamonds appoints senior manager from cornerstone investor to its board ]]> http://www.proactiveinvestors.co.uk/companies/news/62245/stellar-diamonds-appoints-senior-manager-from-cornerstone-investor-to-its-board-72759.html Stellar Diamonds (LON:STEL) said it has appointed Liviu Meran non-executive director, replacing James Campbell.

The 36-year-old is the general manager of Foradex, which owns 23% of Stellar.

Peter Daresbury, chairman of the West Africa focused explorer, said: "We are delighted to welcome Liviu to the board of Stellar. 

“Foradex Invest is a significant shareholder of Stellar and Liviu's presence on the board will further consolidate this support. 

“The board looks forward to working closely with Liviu and Foradex as Stellar pursues its strategy of developing significant kimberlite diamond resources in Guinea and Sierra Leone in to production. 

“On behalf of the board I would also like to thank James Campbell for his dedicated service and support over the years and wish him every success in his future endeavours."


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Tue, 30 Sep 2014 10:26:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/62245/stellar-diamonds-appoints-senior-manager-from-cornerstone-investor-to-its-board-72759.html
<![CDATA[News - Stellar Diamonds: Next few months about carats and cashflow ]]> http://www.proactiveinvestors.co.uk/companies/news/62058/stellar-diamonds-next-few-months-about-carats-and-cashflow--72571.html Carats and cash flow. This is what the next few months are all about for Stellar Diamonds (LON:STEL), according to the explorer’s chief executive Karl Smithson.

His comments were made as the group revealed it had begun testing its dense media separation plant ahead of trial mining of the Baoule project in Guinea.

The various components have come from Mandala and Droujba, the company’s two other projects in the country.

The aim of trial mining is to establish a grade for the kimberlite, which geologists believe could be a source of some stunning alluvial diamonds found in the region. It will also help set a benchmark value for the stones.

Baoule sits in an area of Guinea called Aredor, which is renowned for producing large, very valuable diamonds.

These were the alluvial stones that have been removed from their natural source by natural erosion. So, Stellar hopes its kimberlite is one of the sources for these very rare diamonds.

“The quality of some of the alluvials [diamonds] is brilliant; the majority of the kimberlites have yet to be tested, so it is going to be interesting. Hopefully our pipe is one of the source for these diamonds,” said Smithson.

There is historic data compiled by the mining giant Rio Tinto, which undertook diamond exploration in Guinea from 2000 to 2004.

While none of it is precise enough to compile a maiden resource statement, it does give a hint to the potential of Baoule.

According to the information, the grade could be anywhere between 13 and 40 carats per hundred tonnes.

With a plan to mine an initial 100,000 tonnes, this trial mining phase should create a lot more clarity as well as bring in some much needed cash.

Stellar’s second major project is Tongo in Sierra Leone, which has the potential to become a low-cost underground operation.

It already has a JORC-compliant 1.1mln carat resource, based on one diamond bearing dyke, with another three to explore.

With a 17-year mine life and a net present value of US$53mln the estimated starting capex of US$16.6mln is extraordinarily low.

This is why the group wanted to take Tongo to definitive feasibility study (DFS) phase as quickly as possible.

However, the financial realities of today’s market for mining juniors meant it was only able to raise enough cash to carry out the Baoule work and conclude the bulk sampling of Tongo.

That said, the programme to date has been a major success. Last month the group said a total of 1,182 carats had been recovered from Tongo, taking the average grade to a better than anticipated 178.7 carats per hundred tonnes (cpht).

This was 49% higher than the 120 cpht applied in the resource estimate and represents a decent advance on the 155 cpht logged in July.

Stellar said 53 diamonds were larger than one carat, including stones of 6.7 and 4.6 carats, as it revealed that many of the diamonds were of “excellent shape, colour and clarity”.

The diamonds have now been parcelled up and shipped to Antwerp, which will help generate a modelled run-of-mine diamond value, which is currently US$248 a carat.

Analysts say an upward revision of this number or the overall grade could have a significant impact on Tongo’s net present value.

In fact, a grade of 178.7 carats per hundred tonnes would double the project’s net present value – not that the stubbornly static share price has reflected this potential upside.

The DFS, which was expected to be completed by the year-end, may now take “six to nine months” and another £1-1.5mln to finish up, Smithson said.

Experts believe there may be the potential to surface mine Tongo to fund part of the early capital expenditure to then go underground.

The Stellar CEO agrees and he and his team are still assessing the potential to do just this, though he isn’t prepared to go into detail at this early stage.

Away from the two main projects, Stellar has the three million carat resource at the high-grade but low diamond value Droujba project, in Guinea, “which I think will have its day as diamond prices continue to appreciate”, said Smithson.

Meanwhile, there is also Kono, which is hugely prospective, but over which Stellar is in dispute with the Sierra Leone Ministry of Mines.

“Things are teed up to get that back. I can’t say much more than that. It is just a long painful process, but we will get there,” Smithson said.

And finally, there is Mandala, in Guinea, where Stellar mined 130,000 carats up to 2011 but which is expected to be offloaded if a buyer can be found.

Working in Sierra Leone and Guinea, Stellar’s team is confronted with the reality of the Ebola virus and it isn’t taking the threat lightly.

It has drawn up a response plan, is working to educate the local workforce and is using the services of International SOS, the healthcare group, to ensure it is following best practice.

In common with many other companies in West Africa it is learning to work around the problem rather than running scared.

Looking at the stock, some investors will be happy with the 28% rise in the year to date.

However, this still only adds up to market capitalisation of £9mln – which, compared with the opportunity, suggests a major disconnect.

The current price of 1.37p a share offers a decent entry point based on what the brokers reckon the stock is currently worth.

Daniel Stewart has a 5p price target, Sanlam a 2.3p price target, while Charles Stanley set its sights on 2.1p.

Sanlam Securities’ Charlie Long recently met the Stellar team and he was impressed enough to upgrade his stance to ‘buy’.

He said: “Positive production results and cash flows from Baoulé will differentiate Stellar from most other juniors and should represent a catalyst for the stock."

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Wed, 24 Sep 2014 10:57:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/62058/stellar-diamonds-next-few-months-about-carats-and-cashflow--72571.html
<![CDATA[News - Stellar Diamonds says testing has begun ahead of trial at Guinea project ]]> http://www.proactiveinvestors.co.uk/companies/news/61631/stellar-diamonds-says-testing-has-begun-ahead-of-trial-at-guinea-project-72114.html Stellar Diamonds (LON:STEL) said testing of its 100-tonne per hour dense media separation plant has begun ahead of trial mining at the Baoulé kimberlite project in Guinea next month.

The objective is to process at least 100,000 tonnes of ore in order to estimate the diamond grade and average value. 

The process, it is hoped, will generate an internal resource statement as well as valuable cash flow, with the first sales expected to begin in fourth quarter.

The project is in the heart of the Aredor district, an area renowned for producing high value stones.

Stellar said waste stripping and ore extraction for stockpiling has already commenced.

Chief executive Karl Smithson added: "I am delighted that our team at Baoulé is continuing to deliver on schedule resulting in our processing plant now being fully constructed ahead of imminent trial mining. 

“Commissioning is underway to establish the optimal operating parameters for the plant, after which the first kimberlite ore will be processed. 

“Our objective is to process a very large sample which will not only establish the diamond grades and values with high levels of confidence, but also determine the presence of any large stones for which the Aredor region of Guinea is world renowned.  

“During this process any diamonds produced from trial mining will be sold in order to generate cash flow for the company.”


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Thu, 11 Sep 2014 08:01:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/61631/stellar-diamonds-says-testing-has-begun-ahead-of-trial-at-guinea-project-72114.html
<![CDATA[News - BIG PICTURE - Stellar Diamonds keeps up the pace of progress ]]> http://www.proactiveinvestors.co.uk/companies/news/60995/big-picture-stellar-diamonds-keeps-up-the-pace-of-progress-71437.html Progress in the year to date for Stellar Diamonds (LON:STEL) has been quietly impressive as the latest results from the Tongo Project in Sierra Leone attest.

Earlier today the group revealed a second successive rise in the diamond grade of the kimberlite, which is now almost 50% ahead of initial estimates. This, Stellar says, will almost certainly lead to a rise in the resource.

The share price rose almost 7% to 1.5p and has motored around 40% higher in the year to date. So far so good.

However, there is an argument that the current valuation, which capitalises Stellar at just under £10mln, barely recognises the explorer and developer’s potential.

Daniel Stewart, the company’s broker, reckons the stock is worth 5p. 

Of course DS is a paid cheerleader, but it is not unreasonable that if Stellar continues to deliver, then there will have to be a more significant and sustained re-rating than the one we’ve seen to so far.

The plan set out at the start of the year was simple: produce a definitive feasibility study (DFS) for the Tongo Project in Sierra Leone, while compiling a maiden resource for Baoule in Guinea.

In doing this it hopes to boost its resource base to 7.5mln carats, which at current diamond prices adds up to a contained value of just over US$1bn. 

Recent updates reveal Stellar is making good progress towards unlocking the potential of Baoule. 

The relocation of plant and equipment from other Stellar projects in Guinea is ahead of schedule and first ore should be processed next month.

This fast-track trial mining promises early cash flow but will also be crucial in determining whether Baoule possesses the diamond grade to be commercial.

This large diamondiferous pipe is located in the Aredor region of Guinea, a renowned diamond district.

There is a wealth of information on the alluvial diamonds from the area, which, at US$400 a carat, are of the very highest quality.

The suspicion is that the Baoulé kimberlite may be one of the sources for these stones.

The project was explored in the early to mid-noughties by Rio Tinto (LON:RIO) and bulk sampling was carried out by the Trivalence Mining Corp, which means there is plenty of historic data, which Stellar has access to.

Stellar is targeting an initial 22mln-tonne resource that could be mined as an open pit down to 300 metres. 

The estimated grade is 13-40 carats per hundred tonnes, though even at that lower figure this gives a resource of 3mln carats. 

The value of the stones is put very conservatively at US$200 a carat, although the quality of the alluvial diamonds found in the area suggests this number might rise.

The group will earn 75% of Baoule by spending US$5mln, which will be a combination of cash and assets moved into the joint-venture company.

Grade doesn’t appear to be an issue at Tongo with Tuesday’s update revealing the Sierra Leone kimberlite project in Sierra continues to return excellent results.

In this latest update, the AIM listed group said 1,182 carats had been recovered, taking the average grade to a better than anticipated 178.7 carats per hundred tonnes (cpht).

This is 49% higher than the 120 cpht applied in the resource estimate and represents a decent advance on the 155 cpht logged in July.

Stellar said 53 diamonds were larger than one carat, including stones of 6.7 and 4.6 carats as it revealed they were of “excellent shape, colour and clarity”.

The group now has enough diamonds to support a DFS.

Having completed the bulk sampling and with the onset of the rainy season the group has taken the precaution of pausing work on Tongo and reducing staff numbers as worries over the Ebola outbreak mount.  

Chief executive Karl Smithson said: "Tongo continues to generate excellent results, further underpinning the economic potential of this kimberlite diamond project.

“We have achieved our objective of collecting a further 1,000 carat parcel for the diamond grade and valuation modelling of Tongo Dyke 1, as part of the ongoing feasibility work.

“It is highly encouraging to note the substantial increase in grade to 179cpht which has resulted from reprocessing the tailing material.”

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Tue, 19 Aug 2014 13:51:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/60995/big-picture-stellar-diamonds-keeps-up-the-pace-of-progress-71437.html
<![CDATA[News - Stellar Diamonds says resource estimate expected as Tongo continues to return 'excellent' grades ]]> http://www.proactiveinvestors.co.uk/companies/news/60976/stellar-diamonds-says-resource-estimate-expected-as-tongo-continues-to-return-excellent-grades-71416.html Stellar Diamonds’ (LON:STEL) bulk sampling of the Tongo kimberlite project in Sierra Leone continues to return excellent results, which it expects will lead to a resource upgrade.

In this latest update, the AIM listed group said 1,182 carats had been recovered, taking the average grade to a better than anticipated 178.7 carats per hundred tonnes (cpht).

This is 49% higher than the 120 cpht applied in the resource estimate and represents a decent advance on the 155 cpht logged in July.

Stellar said 53 diamonds were larger than one carat, including stones of 6.7 and 4.6 carats as it revealed they were of “excellent shape, colour and clarity”.

Chief executive Karl Smithson said: "Tongo continues to generate excellent results further underpinning the economic potential of this kimberlite diamond project.

“We have achieved our objective of collecting a further 1,000 carat parcel for the diamond grade and valuation modelling of Tongo Dyke 1, as part of the ongoing feasibility work.

“It is highly encouraging to note the substantial increase in grade to 179cpht which has resulted from reprocessing the tailing material.”

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Tue, 19 Aug 2014 07:20:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/60976/stellar-diamonds-says-resource-estimate-expected-as-tongo-continues-to-return-excellent-grades-71416.html
<![CDATA[Media files - Stellar Diamonds chief on Guinea diamond project’s potential ]]> http://www.proactiveinvestors.co.uk/companies/stocktube/2612/stellar-diamonds-chief-on-guinea-diamond-projects-potential-2985.html Mon, 11 Aug 2014 14:09:00 +0100 http://www.proactiveinvestors.co.uk/companies/stocktube/2612/stellar-diamonds-chief-on-guinea-diamond-projects-potential-2985.html <![CDATA[News - Stellar Diamonds delighted with progress in Guinea ]]> http://www.proactiveinvestors.co.uk/companies/news/60736/stellar-diamonds-delighted-with-progress-in-guinea-71163.html Stellar Diamonds (LON:STEL) expects to be processing ore from its Baoulé kimberlite operation by the end of September after rapid progress in recent weeks.

Processing plants had arrived at Baoulé ahead of schedule, while base camp and road upgrades were complete and plant construction in progress. An environmental impact study was also in progress.

Karl Smithson, chief executive, said: "Stellar has made tremendous progress over the past few weeks towards our objective of bringing the Baoulé kimberlite pipe into trial mining and generating early cash flow in Q4 2014.

"Both our Mandala 100tph DMS and the Droujba Bulk Sampling DMS plants have now been relocated to the Baoulé site.

"Our team on the ground has made strong headway with the re-assembling of the plants, and I am delighted to confirm we are on track for commissioning in early September. 

“The diamondiferous Baoulé pipe is located in the heart of the world famous Aredor diamond fields, a region that has historically produced some of the largest and highest value gem diamonds in Guinea," he added.

The Ebola virus outbreak so far had not affected the operation at Baoulé nor Tongo in Sierra Leone, he said, though a number of precautionary initiatives to mitigate had been instigated.


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Mon, 11 Aug 2014 09:39:00 +0100 http://www.proactiveinvestors.co.uk/companies/news/60736/stellar-diamonds-delighted-with-progress-in-guinea-71163.html