JOHANNESBURG (miningweekly.com) – Diamond development company Stellar Diamonds and Aim-listed West African Diamonds (WAD) have proposed a merger that would result in a reverse takeover of WAD on the London stock market.

Stellar, which is 58,5% owned by Aim- and TSX Venture Exchange-listed African Aura Mining, have signed a heads of agreement to undertake a combination of business interests that would constitute a reverse takeover, it announced on Tuesday.

The shares of the combined entity, to be called Stellar Diamonds, would be readmitted to the Aim market.

The companies would release further details of the merger at a later stage.

Stellar Diamonds, which has a strategy to grow its business through production and targeted consolidation in West Africa, had a portfolio of projects in Sierra Leone and Guinea.

WAD also had a number of exploration and development projects in these two African countries.

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