JOHANNESBURG (miningweekly.com) – The enlarged Stellar Diamonds entity, which would include the merged West African Diamonds (WAD), would relist on London’s Aim market on February 22.

Outgoing WAD chairperson John Teeling on Friday said that its shareholders had approved the reverse takeover of Stellar Diamonds, as well as an associated £5-million fundraising, during a general meeting.

The companies had announced in October that Stellar, which is 58,5% owned by Aim- and TSX Venture Exchange-listed African Aura Mining, had signed a heads of agreement to undertake a combination of business interests that would constitute a reverse takeover of WAD on the LSE.

Teeling and fellow WAD board members James Finn, Paul Nel and Alex van Zyl would step down. Executive deputy chairperson James Campbell would, however, remain on the board of the new Stellar Diamonds entity.

"I wish the new board and management every success. They have a good platform on which to build a serious African-based diamond mining company.  There is further potential in the two producing mines, while the four kimberlite prospects are exciting. Diamond prices have shown a rapid recovery, which will help cash flow. This, plus the £5 million cash raised, will offer opportunities for organic and acquisitive growth," Teeling commented in a statement.

Stellar Diamonds’ expanded portfolio would include two producing diamond mines, Bomboko and Mandala, in Guinea, which had a combined resource base in excess of 1,5-million carats.

It would also include four kimberlite projects, namely the Tongo and Kono projects, in Sierra Leone, and the Droujba and Bouro projects, in Guinea, which were all at various stages of development.

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