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.