Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Stellar Diamonds set to bring in £1.26mln for working capital

Stellar Diamonds 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.
Stellar Diamonds set to bring in £1.26mln for working capital
Stellar Diamonds is set to bring in around £1.26mln net via a convertible loan note agreement and subscription deal,

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.

View full STEL profile View Profile

Stellar Diamonds PLC Timeline

Related Articles

Richland
April 03 2018
The strategic review aims to assess how the company can best leverage its position as the owner of one of the world's largest sapphire mines.
picture of diamonds
November 06 2017
Kareevlei is comfortably among the world’s top ten kimberlite mines on a dollar per carat basis

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use