Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

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.

View full STEL profile View Profile

Stellar Diamonds PLC Timeline

Related Articles

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.
Bag of diamonds
July 06 2018
In a production update, the AIM-listed diamond miner said production in the first half of the year was up 81% year-on-year at 73,028 tonnes

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