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What do they plan to do?
Stellar Diamonds plc, the AIM quoted (LSE:STEL) diamond mining and exploration company focused on West Africa, has raised approximately £1 million through the issue of 88,362,066 new ordinary shares of 1p each at 1.16p per share to directors, existing private shareholders and new institutional investors.
The proceeds of the Fundraising will be used predominantly for the current Trial Mining at the Company’s Baoulé kimberlite project in Guinea and for working capital purposes.
Stellar Diamonds Chief Executive Karl Smithson commented:
“With revenues from our first diamond sale of a 5,900 carat parcel expected in the near-term this placement strengthens the Company’s balance sheet at a time when capital markets in the junior sector are notoriously weak. It also underscores the support of our existing shareholders, most notably UBS Deutschland, and our directors, many of who are participating. We are also pleased to welcome new shareholders to the Company at this exciting juncture in our growth and development.
“Based on the current processing capacity and grades, we expect to continue to yield approximately 2,000 carats per month with regular diamond exports and sales expected during 2015.
“I look forward to providing further updates on production at Baoulé and our maiden diamond sale.”
The Fundraising
The Fundraising has raised a total of £1,025,000 through the issue of 88,362,066 New Ordinary Shares at a price of 1.16 pence per New Ordinary Share. The New Ordinary Shares will be issued credited as fully paid and will rank pari passu in all respects with the existing ordinary shares, including the right to receive all dividends and other distributions declared on or after the date on which they are issued. Application will be made for admission to AIM of the New Ordinary Shares, which is expected to occur, and trading to commence at 8.00a.m. on 5 February 2015.
Total voting rights
Following Admission, the Company’s total issued share capital will comprise of 811,929,724 ordinary shares of 1 pence each. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company following Admission.
Substantial Shareholdings
UBS Deutschland, the Company’s second largest shareholder, has subscribed for 62,400,000 of the New Ordinary Shares. Following Admission, UBS will hold 126,488,416 ordinary shares representing 15.58 per cent. of the Company’s Issued Share Capital.
