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Stellar Diamonds’ shares finally back on AIM

It’s been over six months since the company’s shares last traded on AIM
diamonds falling against a black background
The combined Tongo-Tonguma diamond project has a resource of 4.5mln carats

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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Stellar Diamonds PLC Timeline

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