Stellar Diamonds issue details of unsecured bridge loan

UNSECURED BRIDGE LOAN

Stellar Diamonds plc, the London listed (AIM: STEL) diamond development company focused on West Africa, has announced that it has entered into a bridge loan agreement for an amount of USD150,000 from Deutsche Balaton AG, a new institutional investor pending the passing of certain resolutions at the General Meeting scheduled for 19th November 2015.

At the GM a series of resolutions are proposed in relation to, inter alia, a subscription, issue convertible loan notes and a capital reorganisation as announced on the 2 November 2015. Subject to the resolutions being passed, the Company will receive funds of £1.56 million from Deutsche Balaton and other investors.

An interest rate of 8% per annum is charged on the Bridge Loan though the loan will be repaid no later than the 30th November 2015 from the proceeds of the Fund Raise. Stellar’s Chairman, Lord Daresbury, has undertaken to personally guarantee the Bridge Loan.

The proceeds of the Bridge Loan will enable Stellar to make immediate steps towards the recommencement of the trial mining at Baoulé and the submission of the Tongo mining licence application and not have to wait until the General Meeting has taken place.

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