JOHANNESBURG (miningweekly.com) – London-listed Stellar Diamonds has conditionally raised, through Peterhouse Corporate Finance, £330 000 through the issue of 10.15-million new ordinary shares at an issue price of 3.25p a share.
The placing is expected to be completed by September 14, conditional on the receipt of the funds in respect of the placing shares and admission of the placing shares to trading on the Aim.
Further, following the placing, the West Africa-focused diamond development company is proposing to raise another £200 000, through the issue of 6.15-million shares at 3.25p each through an open offer.
This will be offered to qualifying shareholders, providing an opportunity for shareholders, particularly minority shareholders, to participate in the proposed issue of new ordinary shares of the company.
“Peterhouse has agreed to use reasonable endeavours to procure subscribers for any open offer shares not subscribed for under the open offer,” the company said in an update to shareholders on Monday.
Stellar will use the net proceeds of the placing, together with the net proceeds of amounts raised from the open offer, to prioritise the collective $250 000 payment of the environmental licence for its Tongo project, in Sierra Leone, and the renewal of the Tonguma environmental licence.
The Tongo mining licence has been approved by the Minerals Advisory Board in Sierra Leone, subject to the payment of the Tongo environmental licence.
“Once the Tongo mining licence is issued, fiscal terms may be negotiated and ratified through the Sierra Leone government and Parliament respectively,” Stellar said.
Funds will also be allocated to the ongoing costs related to the Tongo-Tonguma project, general working capital and the payment of certain existing creditors.
Meanwhile, Stellar secured an extension to the longstop date of its $1.65-million outstanding convertible loan note with Deutsche Balaton to September 30.
In the event that Stellar enters into a satisfactory letter of intent for funding of the Tongo-Tonguma project development prior to the new longstop date, then an extension to November 30 will be applied.