Stellar Diamonds (LON:STEL) announced that Richmond Capital now holds a 15.4% interest in the group after participating in its £1.9 million placing and its purchase of Stellar shares from Altima Partners LLP.
The placing was announced in late September at a price below the stock’s then value of 5.5 pence, and since then shares have since risen to 6.6 pence, peaking at over 8 pence on 1 October.
After participating in the placing, non-exec chairman Lord Daresbury now has a 2.47% stake after buying 794,200 million shares.
Other directors who bought shares include chief executive Karl Smithson, who took 130,000 shares and now has a 0.46% shareholding as well as Steven Poulton and Louis da Silva who upped their respective stakes by 147,400 and 128,400 shares to 0.31% and 0.21%.
James Campbell and financial director Angus Ogilvie took 80,000 and 40,000 shares, and now own 0.1% and 0.13% of the company respectively.
These directors were also granted a warrant for every two placing shares.
Stellar also said that Altima Partners no longer holds an interest in the company and due to that, its representative on the Stellar board Paul Rankine has resigned.
“Would like to take this opportunity on behalf of the board to thank Paul for his valued contribution over the past three years and wish him well in the future,” said Daresbury.
Stellar Diamonds has as a portfolio of projects in West Africa. Two projects in Guinea are in production, Mandala and Bomboko, which provide cash flow to the company.
Stellar also owns rights over four high-grade kimberlites that are the focus of further development.
Around £1 million of the proceeds will be invested in a detailed drilling and diamond evaluation programme on the high-grade Droujba kimberlite pipe located in Guinea, the company said.
A further £200,000 has been earmarked to complete the Tongo kimberlite dyke bulk sampling programme in Sierra Leone.
Stellar prepares to commence a drilling programme over the high-grade Droujba pipe in November.
The results are expected to enable geological modelling of the pipe at depth, as well as diamond grade analysis on the core material recovered.
The first bulk sample results from the Tongo kimberlite dykes project in Sierra Leone are on track to be delivered by the end of October with full results expected before the end of the year.
The company is awaiting confirmation of holdings by other significant shareholders that participated in the placing.
Broker Astaire Securities welcomed the news, calling it a “major positive” for Stellar Diamonds.
“Successful placing of the Altima stake removes a significant perceived overhang,” said Astaire.