Stellar secures sufficient funds for working needs until first diamond sales
JOHANNESBURG (miningweekly.com) – Aim-quoted Stellar Diamonds has secured financing for its immediate working capital needs as it ramps up diamond exports and sales from its Guinea operations.
The West Africa-focused diamond development company exported the first diamonds from its 75%-owned Baoulé project this month.
The parcel of 941 ct, including gem diamonds of up to 9 ct in size, had been exported to Antwerp, where it would be sold later this month.
“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 two months thereafter,” CEO Karl Smithson said this week.
Stellar entered into a bridging loan agreement for up to $2-million with YA Global Master SPV (Yorkville), with two initial tranches of $250 000, as well as a £1-million standby equity distribution facility (Seda) and warrant agreement with Yorkville.
However, Stellar did not anticipate using the Seda, which had no required minimum drawdown, and neither Stellar nor Yorkville was under any obligation to agree to any bridging loan beyond the two tranches of $250 000.
The loan facility provided a source of bridge finance to support the working capital and operating requirements of Stellar as it started to generate regular cash flows from Baoulé.
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