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Stellar Diamonds arranges bridging loan with Yorkville

Stellar Diamonds arranges bridging loan with Yorkville

Stellar Diamonds (LON:STEL) has arranged a bridging loan facility for up to US$2mln with financier Yorkville.

The facility, which will be available for three years, will provide two initial loan tranches of US$250,000 to tide Stellar over until regular diamond exports and sales from the Baoulé project get underway.

In conjunction with the loan facility, Stellar has also entered into a £1mln standby equity distribution facility (SEDA) and warrant agreement with Yorkville.

Karl Smithson, Stellar’s chief executive, said: "The company is at an inflection point with the first sale of diamonds from our Baoulé Project expected this month and further regular exports and sales expected to occur every 2 months thereafter. 

“This loan facility provides a source of bridge finance to support the working capital and operating requirements of the company whilst we begin to generate regular cash flows." 

Smithson added the company does not currently anticipate using the SEDA facility. 

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